Strong Local Economy
Status Indicators: Proceeding as Anticipated | Monitoring Progress | Reviewing for Improvement | Information Unavailable
Proceeding as Anticipated
Reviewing for Improvement
Please note that Q1, Q2, Q3, and Q4 refer to the first, second, third, and fourth quarters of the Fiscal Year. The City’s Fiscal Year runs from October 1st – September 30th and is denoted by FY. CY denotes Calendar Year.
The City’s hotel industry did not meet the occupancy target of 70% in the 4th quarter of FY19, with a 66% hotel occupancy rate. Historically, 4th quarter generally sees decreases to the occupancy rate due to school being back in session. This is on par to previous 4th quarter frequencies since reporting of this measure with the exception of the 4th quarter of FY17, which had increase occupancy due to Hurricane Harvey. However, partly due to the stabilization of a growing hospitality market across the Houston region, the 4th quarter has seen a slight increase in occupancy in Sugar Land compared to previous 4th quarter results.
The individual months in the 4th quarter of FY19 are indicated below:
- July - 69%
- August - 65%
- September - 63%
Quarterly average - 66%
Rooms sold divided by rooms available multiplied by 100. Occupancy is expressed as a percentage of available rooms occupied.
Formula: (Rooms Sold / Rooms Available) X 100
The hotel occupancy figures reported here are an average of the three months of the quarter.
The target is ≥70%, which is based on the historic hotel occupancy in the City. With the development of the Visit Sugar Land tourism program and additional sales resources, this figure will likely be increased in future years closer to 72%, which is the stabilization rate assumed in the City’s 2014 hotel/conference center study for that potential future venue.
Additionally, viewing results in relation to other municipalities presents an opportunity to gain additional value from tracking the performance of this measure. The Houston Metropolitan Statistical Area (MSA) also presents the opportunity for insightful comparison to local trends and industry fluctuations that are outside of the City’s control.
Hotel Occupancy Rate provides a glimpse of the activity and health of the tourism and travel industry within the City of Sugar Land.