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

GRAPE EXPECTATIONS

Hill Country wineries crush summer with grape stomping events

Photo courtesy of Texas Hill Country Wineries

Not all wine stomping is done with the feet.

If you ask Texas Hill Country Wineries, good, clean fun is a tad overrated. The nonprofit’s members are getting messy this summer with a series of grape stomps celebrating harvest season.

Yes, the vast majority of the world’s wines are now made with mechanical destemmers and crushers, but there is no harm in cosplaying as a vendemmiatore hopped up on mezzo vino. As long as you keep the white linen tucked away in the closet.

The main event pays homage to the most famous wine scene in popular culture (unless you count Paul Giamatti guzzling a spit bucket in Sideways). The I Love Lucy Charity Grape Stomp, held August 8-9 at Texas Hills Vineyard, includes live music, a costume contest, freshly made Lucy sangria, and souvenir t-shirts available for purchase. All proceeds benefit area volunteer firefighters.

Meanwhile, other Hill Country wineries are putting their own spin on the harvest tradition. Becker Vineyards will pair its high-stepping event (September 5-6) with cheese and charcuterie from its onsite Verandah Bar. Messina Hof is hosting a raucous harvest festival (August 21-22) with grape picking, and Signor Vineyards will roll out lawn games — just don’t wear cleats into the vat.

Wildseed Farms grape stomp, held every Saturday in August, includes a complimentary glass of wine. Texas Wine Collective adds barbecue and tunes from the Dawson Holland band. Whether two-stepping is the proper technique to release juice from the fruit is up for debate. Maybe try the Boot Scootin’ Boogie.

Whichever event, it might be a good idea to have a good foot scrub waiting at the Airbnb. A full list of grape stomping fun can be found here.

wineries vineyards hill country grape stomping music festivals harvest wine