Page 12 - NBIZ August 2021
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The recovery of tourism and other   2021 and a full list of conventions   ✓ International Travel – While
        market factors will determine how      for 2022. Visit San Antonio is      much of the global travel has
        quickly San Antonio will rebound and   hopeful that they will be well      been impacted by the travel bans,
        hotel demand will return, as follows:  attended.                           Mexican National tourism is
        ✓ Tourism – Tourist attractions are   ✓ Business Travel – Business hotel   booming in San Antonio with
          open, and visitors are flocking      bookings have been sluggish         several airlines offering non-stop
          to San Antonio. Tourism should       through the first half of 2021. Hotel   flights to Mexico.
          remain strong throughout the         brands are responding to the new   ✓ Military/Cybersecurity Activity
          summer months.                       “work from anywhere” trend by       – As a major military stronghold,
        ✓ Convention Activity – Bookings are   offering hotel packages with work   the numerous military bases and
          on the rise with a decent number     areas and business perks to draw    cybersecurity companies provide a
          of groups scheduled for the Fall of   workers out of their homes.        continuous base of hotel demand for
                                                                                   the San Antonio market.
                                                                                 ✓ Healthcare – With the South Texas
        FIGURE 1                                                                   Medical Center and numerous
                                                                                   military-related medical facilities,
                                                                                   healthcare is an important element
                San Antonio Hotel Performance by Type of Hotel                     of hotel demand. While both
                                2020 Compared to 2019                              domestic and international medical
                                                                                   care was slowed by Covid-19, it is
           Type of Hotel    Occupancy Pts        ADR %           RevPAR %          beginning to show signs of recovery.
                                                                                 ✓ Auto Manufacturing – Toyota’s
           Upper-Priced          -41.9            -14.5%           -63.1%          manufacturing presence in San
                                                                                   Antonio remained stable during the
                                                                                   pandemic. However, the shortage
            Mid-Priced           -27.1            -18.3%           -50.8%
                                                                                   of auto-related computer chips is
                                                                                   something to watch over the next
           Lower-Priced          -10.7            -19.3%           -34.7%          few years.
                                                                                 ✓ Energy Industry – Exploration in
              Total              -25.7           -22.8%            -53.0%          the Eagle Ford Shale just south of
                                                                                   San Antonio came to a halt during
                                                                                   Covid-19. With the recent return of
        Source: Kalibri Labs                                                       oil prices to above $70 per barrel,
                                                                                   there is hope that exploration will
                                                                                   return to the Shale, increasing
                                                                                   energy industry activity in San
                                                                                 ✓ Sports and Performing Arts –
                                                                                   Entertainment venues are opening
                                                                                   their doors to fans and attendees
                                                                                   and should return to full capacity
                                                                                   over the next year.

                                                                                    Tourism is leading the way back
                                                                                 to normalcy for San Antonio hotels
                                                                                 with the other market factors not far
                                                                                 behind. The timing of these factors
                                                                                 will determine how quickly San
                                                                                 Antonio will reach its new normal.

                                                                                 San Antonio Hotel Market Forecast
                                                                                    The San Antonio MSA hotel market
                                                                                 occupancy declined from 66% in 2019
                                                                                 to 40% in 2020 due to Covid-19, a drop
                                                                                 of 26 occupancy points. The Average
                                                                                 Daily Rate (ADR) dropped $27 from
                                                                                 $115 in 2019 to $88 in 2020. This

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