The hotel industry is a major contributor to Texas’ economy.
But the industry is also one of the state’s most volatile, with a lot of new, high-demand, high priced properties on the market each year.
According to data compiled by the Houston Chronicle, more than half of the industry’s 1,000 hotel rooms were added to the market between 2015 and 2017.
That number jumped from 45% in 2015 to 62% in 2017.
“The industry has really exploded in recent years,” said Jason Egan, president of hotel consulting firm the Egan Group.
“There are just a lot more hotels in the Houston area and there’s a lot less competition.”
Hotels in the Lone Star State can sell for anywhere from $250,000 to $3 million per room, depending on the location, according to Egan.
And the average price of a hotel room in the state is $1,958 per night.
Egan says the industry also needs to be diversified, with more than a few different types of properties available.
“I think that hotels are just too hard to sell right now,” Egan said.
“They need to be more of a diversified market.”
Hotel industry experts say there are some areas of the Houston region where prices are going to go up faster than others.
That’s because they tend to have more new hotels, which can drive up the overall price.
For example, the city of Katy has more hotels on the rise than any other Houston metro area, with nearly 20% of all hotel rooms being added between 2015 to 2017.
A Houston Chronicle analysis found that the area also had the highest number of new hotels in 2018.
The average hotel room price in Katy went up $3,200 from $1.1 million in 2017 to $2.2 million in 2018, the highest increase in the nation.
Other Houston-area cities also saw the biggest increases in hotel rooms between 2015-2017.
Austin had the most hotels added in the city, with 7% of the total.
In Fort Bend County, the county saw a 13% increase in hotel room prices.
In addition, the average room price is increasing faster in some places than others, Egan explained.
He noted that the Dallas area is experiencing a surge in hotel demand due to high population growth.
The most expensive hotel room is usually in a suite in a three-star hotel.
A single room in a five-star location costs $2,700 per night, but can cost up to $5,000 per night in high-end hotels.
Eguin also said the most expensive hotels can be found in downtown areas, which are known for having more amenities, such as indoor pools and saunas, and more restaurants.