2024 San Antonio Hospitality Market Report
Key Findings
- The Hyatt Regency San Antonio Riverwalk traded for$230,000,000 in April 2024, making it one of the top trades in the country for the year.
- Project Marvel, a new initiative for the metro’s downtown, includes a baseball stadium, a 1,000-room hotel, and renovations for the Henry B. Gonzalez Convention Center.
- San Antonio’s CBD recorded the highest ADR out of the metro’s submarkets at $179.25.
San Antonio Hospitality By the Numbers
- Occupancy: 61.1%
- ADR: $131.34
- RevPAR: $80.21
- Sales Volume: $248M
- Under Construction: 1,200 rooms
- Sale Price/Room: $158,537
San Antonio Demographics
- Unemployment Rate: 3.9%
- Current Population: 2,570,563
- Households: 941,197
- Median Household Income: $74,947
The metro’s major employers include Toyota Motor Manufacturing, JPMorgan Chase, Frost Bank, and four military bases. The metro attracts leisure visits for its SeaWorld and Six Flags Fiesta Texas destinations. Visitors will be drawn to the metro as a new Spurs Stadium is being developed in Downtown San Antonio.
San Antonio Hospitality Market Performance
San Antonio’s hospitality industry recorded a slowdown throughout 2024, due to increased levels of supply. Most new supply was for upper- and middle-level properties, resulting in a minimal 1.2% RevPAR change by year-end 2024. Despite the slowdown in RevPAR performance, ADR improved during the year. By the end of December 2024, ADR grew by 1.8%, which can be attributed to increased business travel.
Forecasts for 2025 are positive as many events will draw in visitors during the first half of 2025. One example is the NCAA Men’s Final Four Championship, which is scheduled for March. Additionally, forecasts for 2025 predict RevPAR and ADR to increase by 4.3% and 3%, respectively, by year-end.
San Antonio Construction
The current pipeline of 1,200 rooms is expected to finalize in 2026, and it will expand the market’s inventory by 2.5% upon completion. Most of the developments will be for middle-tier hotels, with construction concentrated in the San Antonio CBD and Northeast submarkets. These areas will receive 69% of the new rooms in the construction pipeline.
Sales Velocity
Over 20 properties traded in San Antonio throughout 2024, with mid-tier hotels making up the most sales. About half of the transactions occurred in the San Antonio Northeast and Northwest/SeaWorld submarkets. Looking ahead, more properties may begin trading as several hotels have loans maturing in the next couple years.
