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.
Hotel Occupancy in the 1st quarter of Fiscal Year 2022 reached 59.8%, which is roughly 20% higher than fiscal year 2021’s 1st quarter, indicating a slow recovery in growth. While there has been some improvement, the COVID-19 pandemic continues to have a negative impact on the hospitality industry overall. Hotels continue to experience an increase in leisure travel while corporate and business travel remains low. Industry forecasts for the Hospitality Industry indicate a return to pre-COVID figures could take up to 4-5 years to see a full recovery.
A month-by-month breakdown for Q1 is as follows:
- October: 57.7%
- November: 62.4%
- December: 59.2%
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.