A first: Austin beats San Antonio's hotel business (Howe, San Pedro: 2015, hotels)

[verybadgnome]

It was just a matter of when this was going to happen. Projects like the 1,000 room Fairmont aren't even in the mix yet.

A first: Austin beats San Antonio's hotel business, Source Strategies report shows - Austin Business Journal

[Trainwreck20]

One possible caveat - that was 2nd quarter results, which likely still had a boost from the legislature being in session. That only happens for 2 quarters every other year.

[cBach]

Austin will keep distancing itself from San Antonio in every way.

[10scoachrick]

And we care...why? Is there a prize?

[Trainwreck20]

Originally Posted by 10scoachrick

And we care...why? Is there a prize?

More hotel taxes . Not that it matters compared to SA, but I do find it a bit odd. I am not surprised occupancy is higher in Austin, I but I am surprised that the revenues are.

[cBach]

Originally Posted by Trainwreck20

More hotel taxes . Not that it matters compared to SA, but I do find it a bit odd. I am not surprised occupancy is higher in Austin, I but I am surprised that the revenues are.

Because occupancy is higher, room rates are higher. Higher room rates causes the higher revenues, assuming the same number of hotel rooms.

SA has a lot more hotel rooms in its downtown core, but we are quickly catching up. However, the nature of our festivals (ACL, SXSW, F1) means that when we are sold out the rates are outrageous. The only festival in San Antonio, Fiesta, is basically for locals and rates don't jump.

In the hotel business, it's not just occupancy but it's occupancy at peak times. At peak times, we hover 98-99% and SA doesn't get that. That's where the big dollars are... SA has a more even flow throughout the year, however. Summer tourism in Austin is nothing compared to SA since SA has Sea World, Fiesta Texas, and Schlitterbahn close by.

As the new hotels in Austin come online, the rates will stabilize and eventually decline. There are a lot of properties that are disproportionately expensive for what they give. They won't be able to compete with, say the W or the new JW Marriott.

[gpurcell]

Colleague of mine was talking with a event planner for a major national non-profit a year or so ago and she was really bullish on Austin v. San Antonio for her conventions because San Antonio, basically, has been done for decades. Austin is a perfect mix of conventioneer friendly attractions and freshness. Only things holding us back for that business are DT hotel rooms and convention center space (still too small for a lot of big ones).

[TXEX06]

Austin is definitely surging. The Hemisphere Park redevelopment and San Pedro Creek redevelopment will provide a big spark for SA.

Phase 2: Civic Park | Hemisfair

San Pedro Creek Improvements Project

[SweethomeSanAntonio]

Originally Posted by gpurcell

Colleague of mine was talking with a event planner for a major national non-profit a year or so ago and she was really bullish on Austin v. San Antonio for her conventions because San Antonio, basically, has been done for decades. Austin is a perfect mix of conventioneer friendly attractions and freshness. Only things holding us back for that business are DT hotel rooms and convention center space (still too small for a lot of big ones).

Austin tourism is growing but I doubt it will catch up to San Antonio as a visitor destination. San Antonio attracts 31 million visitors and is a 14 billion dollar industry for San Antonio. Austin attracts about 17 million people and that's impressive for Austin. As far as events Fiesta attracts almost 4 million people from all over in one week to its 100 events. The S.A. Rodeo is also a big time event attracting over 1.2 million visitors. Austin does have some cool attractions and festivals but S.A.'s events are bigger and they draw bigger crowds. If Austin ever catches up to S.A. For tourism, the same can be said for San Antonio's IT industry which is closing in on Austin's.

We live in a great region, gotta love both cities.

[Novacek]

Originally Posted by SweethomeSanAntonio

the same can be said for San Antonio's IT industry which is closing in on Austin's.

Uh, no, not in the slightest.

BEA: News Release: GDP by Metropolitan Area, Advance 2014, and Revised 2001–2013

In the most recent numbers, Austin saw a 6.1% increase in metro GDP. Of that increase, .4% was attributed to the Information segment.

San Antonio saw a still respectable 3.8% increase. But only 0.03% was due to Information. It's standing still.