Commercial real estate in Houston is booming as the demand for hotels surges higher than ever before. Now is a very good time to get involved in this business is what a recent report has to state. The survey had a sample size of about 60 managers, all of which were employed at local hotels in Houston.
The report has several predictions to share. For instance, the demand for hotel rooms is expected to rise by 2.3% in the next year and by 4.2% the year after that. In 2016 and 2017, the percentage will also likely rise by 5.2% and 4%. So for the next five years or so, the demand for hotels in Houston is definitely not slowing down. This year, the percentage enjoyed an increase of 4.5%.
There are many factors that are contributing actively to the increase in demand. The oil and gas industry is enjoying a surge, and has passed the effect onto the commercial real estate industry as many foreign investors stay in the hotels. Convention activity also is playing its part quite impressively, and will make a more notable contribution when a new center is completed in 2016. Another factor that can be attributed to the same purpose are major sporting events such as the Super Bowl and the NCAA Final Four, which will be witnessed by the entire Houston metroplex.
Since the demand is rising, more rooms are also being constructed to accommodate the masses. In 2014, the number of hotel rooms is going to rise by 1.6% and in 2015, the value will be 2.9%. After this, construction will likely pick up pace and rooms will increase by an impressive 4.8% in 2016 and 6.3% in the year 2017.
More hotels are also being constructed in various parts of the city. These along with the newly built rooms will also incorporate features that help save significant amounts of energy.
As of now, the occupancy rate in hotels is about 70%, whereas some time back, this value was only 55%. During the second quarter of this tear, the occupancy rate was around 69%, which is not much different from what it is today. But now, the percentage is going to rise for at least the next five years or so.
All the hotel managers are really excited because the near future is going to bring good business to them. And good business also leads to homes being built!