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. To see the annual performance of this measure, click here.
The City’s hotel industry fell below the target goal of ≥70% in the 4th quarter of 2018, with a 65% hotel occupancy rate. This is a 9% decrease from the 4th quarter of 2017. However, some of the decrease can be attributed to many of our hotels housing Hurricane Harvey victims in the 4th quarter of 2017. Historically, the City sees a 4th quarter hotel occupancy decline due to children going back to school and families not vacationing during these months. The overall hotel occupancy rate for FY 2018 of 72% exceeds the target of ≥70%. These results are higher by 4% than the overall hotel occupancy rate for FY 2017.
The industry’s ability to remain strong and to stay above the City’s target goal, while gaining the Courtyard by Marriott at Lake Pointe hotel at the beginning of FY2018, is due in part to the many destinations Sugar Land has to offer visitors including the weekly events offered at Sugar Land Town Square, the vast array of shows at the Smart Financial Centre, baseball games and special events at Constellation Field and our family-friendly museums – Houston Museum of Natural Science at Sugar Land and Fort Bend Children’s Discovery Center.
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.