Page 12 - NBIZ August 2021

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
Antonio.
✓ 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

12 NBIZ ■ August 2021