Dallas hotels see revenues bounce back in Q2 as delta variant weighs on recovery

According to a report from Texas hotel consultancy Source Strategies, Dallas hotels saw a welcome surge in travelers booking rooms in the second quarter, leading to a nearly 200% increase in revenue over the same period in 2020.

The report marks an encouraging turnaround on recent data suggesting that Dallas hotels were still experiencing recession-like conditions in early summer.

Still, hotel revenue in Dallas was 20% below pre-pandemic levels for the quarter, and analysts warn that the industry’s continued recovery may depend on individual behavior.

“We are cautiously optimistic that the recovery will continue for the remainder of 2021 and through 2022,” said Todd Walker, president of Source Strategies, in a statement. “We are still very much aware that it was business and individual decisions that caused the initial decline in demand last year. Consumer confidence will be key to a full return for the industry. “

Hotel occupancy in the greater Fort Worth area recovered slightly more than their counterparts in Dallas. In Dallas, according to Source Strategies’ analysis, hotels recorded roughly 60% of rooms booked in the second quarter, while Fort Worth hotels saw 62% of rooms booked.

Urban markets and hotels in major business centers across the state are still seeing low occupancy rates on weekdays, according to Source Strategies.

The average daily price for a hotel room in Dallas was also around 10% cheaper in the last quarter than in the same period in 2019 before the pandemic.

The recovery in Dallas hotels lagged other major subways in the second quarter.

Across the state of Texas, Greater Austin hotels saw the largest year-over-year revenue growth compared to other major cities. Hotel revenues in the Houston metropolitan area were closer to pre-pandemic norms than any other metro, falling just 6% below 2019 levels.

The hotel industry is not expected to fully recover before 2023. And as hotel owners return to profitability, they have raised concerns about hiring difficulties and a persistent lack of business travel.

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