REOC San Antonio
Commercial Real Estate Since 1974   
Kim_Gatley
Kim Gatley
S
enior Vice President & Director of Research at REOC San Antonio

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Great time for good deal at San Antonio area hotels

Riverwalk hotelReflecting tough economic times, the hotel industry is struggling with the worst downturn since 2001 and the repercussions of the 9-11 terrorist attacks.  Leisure travel is down in response to increased unemployment and those who fear that they may lose their jobs.  Corporate travel is down as companies continue to tighten their belts.  Occupancy for nearly all Texas major markets is significantly off last year’s levels.  The local San Antonio hotel industry is not only feeling the pinch of the economic slowdown but is also experiencing the impact of unprecendented growth – new inventory started before the economy turned. 

According to the Monthly Measure report for July 2009 released by the San Antonio Convention & Visitors Bureau, area hotels experienced a decline in both occupancy and average room rates.  At the close of June, 2009, the San Antonio hotel occupancy dropped to 66.5% – down 8.2% from a year ago and the average daily rate declined 7.5%, based on data from Smith Travel Research.

The article Rooms for rent: CHEAP, San Antonio Express-News, August 29, 2009, cited second quarter 2009 data from both Smith Travel Research and Source Strategies, Inc.  while a companion article in the August 28, 2009, San Antonio Business Journal entitled Hotel-room glut in the city hits at bad time, experts say, added forecasts from PKF Hospitality Research which indicate that occupancy and average daily room rates will continue to slide through the remainder of the year.

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