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.
The City’s hotel industry slightly fell below the target goal of 70% in the 2nd quarter of FY19, with a 67% hotel occupancy rate. This is a 7% decrease from the 2nd quarter of FY18. A large portion of that decrease year over year is attributed to the high occupancy rates during the aftermath of Hurricane Harvey, experienced from October to December 2017 (Q1-FY18). The quarter ended with the occupancy rate falling slightly below the 70% target by 3%.
The individual months in the 2nd quarter of FY19 are indicated below:
January - 57.1%
February - 69.2%
March - 75.8%
With the Oil and Gas industry's ongoing struggle to recover the oil market and the 2nd quarter falling in mostly in session school months, Sugar Land's Office of Economic Development is conducting research using data to identify trends to better understand the holistic hotel market within the Houston metropolitan statistical areas (MSA).
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.