Impact of COVID-19

Houston hotels suffered Texas' fourth biggest drop in revenue during pandemic

Revenue is down for hotels such as Tilman Fertitta's Post Oak.

Photo courtesy of The Post Oak Hotel

Houston hotels have suffered during the pandemic, adding up to the fourth biggest drop in revenue among Texas' major metro areas.

A report released September 15 by local hotel consulting firm Source Strategies Inc. shows hotel revenue in the Houston area plunged 61.4 percent in the Houston market, with an occupancy rate of 37 percent. In the second quarter of last year, the occupancy rate was 65 percent.

The Bayou City actually fared better than its Texas neighbors. Statewide, hotel revenue plunged a record 64.1 percent, while the occupancy rate slid to 35.8 percent.

To put that data into perspective, Source Strategies says the second-quarter losses added up to more than the total losses racked up during the Great Recession.

“This is an economic disaster on a scale that we have not seen before, and we have been covering the Texas lodging industry for more than 30 years,” Todd Walker, president of Source Strategies president, says in a release. “Hotels are under extreme financial pressure at this point, and many will not be able to survive if this low level of demand continues into next year.”

Texas’ other major metro areas didn’t escape the damage caused by the coronavirus pandemic. Second-quarter hotel revenue dropped:

79.7 in the Austin area. Occupancy rates are now 32.8 percent, down from 76.8 percent in the second quarter of last year. It's the biggest drop in revenue ever recorded for the city— and the biggest anywhere in Texas.
74.1 percent in San Antonio. The occupancy rate sank to 31.6 percent, down from 67.6 percent in the second quarter of last year.
72.9 percent in the Dallas market, with an occupancy rate of 32 percent. In the second quarter of last year, the occupancy rate was 72 percent.
70 percent in the Fort-Worth Arlington market, with an occupancy rate of 31.1 percent. In the second quarter of last year, the occupancy rate was 65.9 percent.

Texas markets that turned in the best financial performance in the second quarter were Corpus Christi and Brownsville-Harlingen, where hotel revenue declined less than 20 percent, the report says.

The state’s top RevPAR performers were mostly along the Gulf Coast in places like Galveston, Port Aransas, and South Padre Island. Galveston’s San Luis Hotel took the state’s No. 1 RevPAR spot in the second quarter, at $148.06. That compares with $223.94 in the second quarter of 2019 when it the No. 17 spot statewide.

Locally, second-quarter RevPAR for Tilman Fertitta’s Post Oak Hotel at Uptown tumbled from $203.83 to $90.17, shifting it from the No. 27 position last year to the No. 23 position this year.

Here are examples of how jumbled the second-quarter RevPAR numbers for the state’s major metro areas were:

At No. 61, the Doubletree Hotel Austin ranked first in the Austin market for RevPAR, at $74.98. Its statewide RevPAR ranking in the second quarter of last year was 316th. Low-cost hotels dominated the rest of Austin’s second-quarter RevPAR leaders.
In the Dallas market, the Residence Inn Dallas West topped the list for RevPAR, at $60.58, good enough for 142nd place statewide. In the second quarter of 2019, its RevPAR was $98.16, landing it in 550th place.
Hotel Emma ranked third in Texas during the second quarter of 2019 with RevPAR of $300.94. In the second quarter of this year, the Pearl hotel’s RevPAR fell to $93.99 — putting it in 17th place statewide.
In Arlington, the Residence Inn racked up RevPAR of $99.34 in the second quarter, down from $122.25 during the same period last year. That pushed the property up from 248th on the second-quarter RevPAR list last year to 10th this year.

hotels

the bee's knees

Hidden cottages offer a sweet retreat for Round Top antiquers

Photo by Alex Montoya

Welcome to The Rose Cottage at 304 on the Hill.

As the Round Top Fall Antiques Show comes to a close, visitors admire, catalog, and post the most coveted new wares online while placing their stylish Fraulein Boots and Kemo Sabe hats in their respective wardrobes, presumably until rodeo. Equally relatable to this post-show ritual is the resounding woeful sentiment held by so many show-goers annually relegated to day-tripper status — “we simply must find accommodations next season!”

Anywhere from 10 to 15 years ago, the notion of finding a hotel, motel, cottage, or even a camper to rent in Round Top was, well, laughable. However, thanks to a steady increase in lodging investments, it’s no longer such a comical feat to pull off. Over a dozen boutique properties have opened over the past decade, each one as charming as ever, making sure that, with some strategic planning, an overnight in Round Top is well within reach.

Because the spring and fall antiques shows span two weeks and individual venues open and close on different schedules, visitors can easily turn a shopping trip into a full getaway. Lodging options throughout Round Top make it easy to stay close to the action, whether visitors prefer boutique hotels, charming cottages, or a property with room to settle in for several days.

Guests can book rooms at Hotel Lulu, the stylish Frenchie Boutique Hotel, the eclectic Wander Inn located on the Junk Gypsy grounds, Hostie’s newly-opened Rabbit Hole Motel (complete with a swimming pool, fire pit, and pickleball court), or cozy accommodations at Round Top Inn and Red Antler Bungalows, all offering convenient access to the town’s markets, events, and dining.

Looking for something close to the action, but tucked away? 304 on the Hill, aka Rose Hill Round Top, certainly fits the bill. As the crow flies, this property is positioned approximately a quarter mile north of Boon & Co., making its proximity to town and Henkel Square easily walkable — something to consider in a town with essentially zero ride sharing infrastructure to speak of.

Situated on eight acres of lush hill country, a central farmhouse — owned and occupied by local residents James and Yvette Webb — anchors three small cottages that, together, can accommodate up to 12 guests. The grounds include a pond and a stone fire-pit-lounge perfect for unwinding after a long day of antiquing.

“We love our property because we’re tucked away at the end of W. Mill Street on 8 acres. We feel like it’s unique because it seems like we’re out in the country but yet we’re actually still in the city limits of Round Top,” says James. “We’re 2 of the 87 population. It’s a great place to live and the three cottages are great rentals for the antique shows or just a weekend.”

Since 2008, the three cottages — named The Rose Cottage, The Pond Cottage, and This Old Porch — have granted guests bucolic, hill country views just steps from the hustle and bustle of the square. Each cottage offers a generous porch with either rocking chairs or a vintage glider; This Old Porch includes an intimate outdoor dining area, complete with vintage wicker chairs. In fact, each cabin comes accessorized with local antiques and works by local artists.

Guests who are keen to wander may take notice of fun outdoor sculptures strewn about the grounds or even the stack of bee boxes on the eastern side of the property. Watching the bees bumble about between the stacks can easily delight outdoorsy types during a morning coffee break — coffee and half-and-half are provided, as is chilled Fiji water, Chobani yogurt in several flavors, and other snacks. While honey from the hives would be a nice touch, it’s Brenham Bees who manage the stacks, gifting the Webbs just enough for personal use and a few seasonal gifts.

Should the occasion arise, take a moment to wave at the main house’s canine occupants. The littles are Paco and Hugo, while the bigger boys are Tuvé and Jasper. They remain within the confines of the Webb’s personal fenced abode, but guests can sneak a peek if they’re out and about.

Whether one remains a dedicated day tripper or plans far enough ahead to decamp for a while, Round Top during the fall is seldom an unpleasant experience. The lodging boom is far from over, with a large wellness-focused hotel property opening spring 2027 and smaller boutique operations opening all the time. Regardless of where anyone chooses to stay, one thing remains the same — everyone ends up at Royers.

Photo by Alex Montoya

Welcome to The Rose Cottage at 304 on the Hill.

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