Dallas-Fort Worth led the state in hotel revenue in 2018.
But the biggest hotel revenue growth was in Oil Patch properties in West Texas, according to a new report by Source Strategies Inc.
D-FW hotels took in revenue of almost $3.3 billion last year — more than any other metro area in the state. The Houston area was a distant second with about $2.5 billion in revenue.
Total hotel revenue in North Texas was up 8.5 percent in 2018. That’s slightly less than the statewide increase of 9.1 percent, according to Source Strategies.
D-FW had three of the top 10 revenue-per-room hotels in Texas last year, including the No. 1 revenue producer, Uptown’s Ritz-Carlton. Downtown Dallas’ Joule Hotel and the Mansion on Turtle Creek also made the statewide list of the top-performing hotels in 2018.
The Dallas area added 4,200 new hotel rooms last year, a 5.3 percent increase to 84,000 rooms. Only the Houston area had more new hotels with 4,900 new rooms.
While D-FW revenue topped Texas, the Midland-Odessa market saw the biggest percentage growth, fueled by the Permian Basin energy boom. Midland-Odessa hotel revenue jumped 82 percent last year and occupancy was among the highest in the state at 75.4 percent.
Midland-Odessa had an average daily hotel rate of almost $144, the highest in Texas.
“Oil patch lodging markets thrived with last year’s high crude oil prices but saw a correction at the end of the year,” Todd Walker, Source Strategies president, said in the report. “West Texas crude has been over $50 per barrel for most of the year, and lodging demand in the oil and gas production counties remains the highest it has been in a decade.”
Statewide hotel occupancy was just over 65 percent last year, with average occupancy in the D-FW area at almost 69 percent.
D-FW had an average daily hotel rate last year of $109.50, compared with $138.40 in the Austin area and just more than $108 in Houston, according to Source Strategies.