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To find Texas’ top-performing hotels, head to the coast, hills and desert

Dallas Morning News logo Dallas Morning News 9/17/2020 By Steve Brown, The Dallas Morning News

One of the top Texas' hotel at midyear wasn’t a Ritz-Carlton, Hyatt or Four Seasons.

No, the second-best-performing hotel property in the state in the second quarter was the historic Gage Hotel in the West Texas whistlestop of Marathon.

Built in 1927 by a Texas rancher, the 45-room Gage Hotel is just down the road from Marfa and 40 miles north of Big Bend National Park.

It’s easy to practice social distancing in this little town, where the biggest buzz comes from passing freight trains.

San Antonio-based hotel consultant Source Strategies Inc. surveys the Texas hotel market for winners and losers each quarter.

In the second quarter, the best-performing hotels in the state weren’t the big city inns that have been hard hit by the COVID-19 pandemic.

Along with the Gage, Galveston’s San Luis Hotel, the Best Western Ocean Villa in Port Aransas, a Courtyard By Marriott on South Padre Island and the Hampton Inn & Suites in Del Rio were all at the top of the list of Texas hotels with the best revenues per room.

Travelers looking to escape big city pandemic lockdowns headed to the coast or the plains of West Texas for some R&R.

Statewide hotel revenue plunged 64.1% in the second quarter.

And the year-over-year slide in sales was even worse in the major metros, including Austin (-79.7%), Dallas-Fort Worth (-72%) and Houston (-61.4%).

Dallas-Fort Worth hotel occupancy in the second quarter was less than 32% with an average daily room rate of $71.54.

“This is an economic disaster on a scale that we have not seen before, and we have been covering the Texas lodging industry for more than 30 years,” Todd Walker, Source Strategies president, said in the report. “Hotels are under extreme financial pressure at this point, and many will not be able to survive if this low level of demand continues into next year.”

The best-performing hotel flags were bargain brands.

The top revenue per room hotel in the Dallas-Fort Worth area was the Arlington Residence Inn, which only has 96 rooms.

Luxury hotels saw their revenues fall by more than 90%.

None of Dallas' luxury hotels — which were among Texas' top performers in 2019 — ranked any higher than 257th in the most recent quarter’s report by Source Strategies.

Texas big city hotel revenues

Percentage declines in revenues in second quarter vs. a year ago:


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