Inflation erodes nominal gains for average daily rates in Texas’ largest markets

“While nominal ADR across major Texas markets climbed approximately 15% above 2019 baselines throughout 2024, this growth proved insufficient to outpace broader economic pressures still affecting the sector. When indexed to 2019 dollars, 2024 real ADR values show that none of the state’s five largest hotel markets consistently maintained 2019 pricing power, averaging about 5 points below indexed baselines.“