Houston hotels expected to win big during Super Bowl LI
On Sunday, February 5, Houston will host Super Bowl 51 at NRG Stadium. The New England Patriots will take on the Atlanta Falcons in what is sure to be a great event for the city.
Regardless of which team comes out on top, Houston’s hotels are sure to win big. According to a projection by STR’s consulting and analytics division, Houston’s hotel market is expected to record an overall performance growth between 150% and 350% during Super Bowl 51 weekend.
Over the last 9 years, all Super Bowl host cities experienced year-over-year revenue per available room (RevPAR) growth of more than 100% during the event weekend. Indianapolis stands out with a phenomenal 1,082% increase in RevPAR in 2012.
Super Bowls - 2004 - 2016
The last time Houston hosted the Super Bowl (2004), the city’s hotel industry saw RevPAR gains of 358.3% on Friday, 385.1% on Saturday and 411.1% on Sunday. It is interesting to note that markets with historically strong February performance, such as New York, Miami and San Francisco, experienced lower RevPAR growth on those weekends – although still in triple digits.
Houston Super Bowl 2004 RevPAR Growth
For hotel markets, hosting the Super Bowl is the equivalent of winning the Super Bowl. The graph below shows a comparison of the average RevPAR percentage change during several large U.S. events that took place in 2015.
Among those, the 2015 Super Bowl in Phoenix produced the largest year-over-year RevPAR increase (+197.1%) in the three submarkets closest to the event. Next in line using the same submarket calculation was the NCAA Men’s Final Four (+101.2%) in Indianapolis, the College Football Playoff National Championship in Dallas (+80.0%) and Wrestlemania 31 (+62.8%) in San Francisco.
"For hotel markets, hosting the Super Bowl is the equivalent of winning the Super Bowl."
2015 Major U.S. Events by RevPAR Growth
While it’s no surprise that an event like the Super Bowl leads to significant boosts for a market’s hotel performance, it is not easy to forecast how high performance growth will be. Houston’s hotel market is currently facing challenges from low oil prices and rapid hotel supply growth. We will only know the exact performance figures later in the week of February 6, but we can be sure of a prosperous weekend for Houston’s hotels and a great show for the fans.
For more information about the Super Bowl and other major U.S. events, check out STR’s Events Database, covering how major events impact hotel market performance.