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

New Parks

54,000-acre Hill Country ranch to become Texas' 2nd largest state park

Photo from property listing by Icon Global

Silver Lake Ranch adds 54,000 acres to Texas' public lands.

Texans will soon have a massive new state park to explore, second only to Big Bend Ranch State Park in size. Silver Lake Ranch, the 54,000-acre plot of land spanning Edwards and Kinney counties, was owned by the Moody Foundation, and now, largely thanks to a major philanthropic gift, it's headed into public hands.

The Moody Foundation gifted its 87.5 percent ownership interest in the ranch to the Texas Parks and Wildlife Department (TPWD), with TPWD purchasing the remaining interest for $11.85 million. The funds come from the Centennial Parks Conservation Fund and Sporting Goods Sales Tax — both approved by Texas voters.

“The Moody Foundation is proud to help preserve this remarkable stretch of Texas Hill Country and make it accessible for generations to come,” said Ross Moody in a press release. “Silver Lake Ranch represents the natural beauty, history, and spirit of our state, and we are honored to make this gift to Texas Parks and Wildlife to ensure it remains protected and enjoyed by all Texans for years ahead.”

The property will officially become Silver Lake State Park, named for the spring-fed 30-acre lake at its heart. Sitting roughly 350 miles west of Houston, nestled between Rocksprings and Uvalde, the land is home to some beautiful hill country wildlife and nature at a Texas manageable drive of about two hours from San Antonio.

Currently the park is in its most rugged and undeveloped form: steep limestone canyons drop into rolling hills lined with live oaks and juniper trees, with miles of river frontage tracing the West Nueces River. Several creeks wind through the property, including Sycamore Creek, Lost Creek, and North Spring Creek, along with Blue Waterhole and Dutch Waterhole.

Caves and other landmarks dot the landscape, and wildlife includes white-tailed deer, turkey, javelina, and dove. Portions of the property have even been identified as a potential habitat for the endangered golden-cheeked warbler.

According to the press release, this land, previously used for sheep and cattle ranching, will be developed in phases over the next several years, also using the Centennial Parks Conservation Fund. Initially, access to the park might look like guided tours and limited day-use opportunities while planning and infrastructure are underway. Later, trails and basic visitor facilities will be added, and ultimately, the park will include expanded recreational amenities like camping and paddling access.

Now that the acquisition is complete, TPWD staff and private contractors plan to gather feedback from the public and surrounding communities to help map out recreational opportunities. This may take "many months to complete," says the press release. TPWD will communicate any upcoming milestones, including a potential opening date, at TexasStateParks.org

"This is an exciting addition to our state park system, and we are grateful to our partners at the Moody Foundation for their philanthropy and for bringing this slice of the hill country to the people of Texas," TPWD Executive Director David Yoskowitz says in the press release.

And as folks are pointing out on TPDW's reel announcing the new park: it's "Better than any subdivision."

silver lake ranch state parks parks nature wildlife animals