Guests in Dallas are checking in to some of the most profitable hotels in the state, experts say.
A new report from San Antonio-based hotel consulting and research firm Source Strategies Inc. indicates five of last year’s top 20 Texas hotels for revenue per available room (RevPAR), a key metric of financial performance in the hotel industry, were in Dallas. Ten Dallas hotels landed in the top 100, and another 38 take up spots on the list of 524 hotels.
Topping the revenue list for local hotels was The Ritz-Carlton, Dallas, which also ranked No. 1 statewide, with RevPAR of $336.12. Joining it in the top 20 were The Joule ($246.09, ranked seventh); Mansion on Turtle Creek ($238.13, ranked 10th); Rosewood Crescent Court ($215.01, ranked 15th); and ZaZa ($214.53, ranked 16th).
For all hotels in the Dallas metro area, RevPAR in 2018 averaged $74.92, up from $73.64 in 2017 and compared with $69.76 statewide in 2018, Source Strategies says.
Overall, hotel revenue in the Dallas-Fort Worth-Arlington metro area jumped 8.5 percent last year to $3.277 billion. The metro area, which accounts for 27.7 percent of the state's hotel market, also posted a 68.9 percent occupancy rate, the report shows. With the addition of 4,800 hotels rooms in 2018, Dallas' supply of hotel rooms grew 6.15 percent, the report adds.
The Ritz-Carlton was the only Texas hotel with RevPAR above $300 in 2018. In second place statewide was the Four Seasons Hotel in Austin ($290.85). Hotel Emma in San Antonio ($287.27) placed third, South Congress Hotel ($256.23) ranked fourth, and Hotel San Jose ($256.21) ranked fifth.
The highest ranking Houston hotel was Hotel Granduca (No. 12), with RevPAR in 2018 of $223.07.