With demand driven by energy, health care, and shipping, Houston’s hotel market reached historically high occupancy and average rate in 2013. The following article tracks trends in hotel supply, demand, and performance across the city’s submarkets. A firmly entrenched, expansive, and consistently viable oil and gas sector has earned Houston the moniker “Energy Capital of the World.” Houston is home to 24 companies on the 2012 FORTUNE 500 list, and the vast majority are energy conglomerates (see list below).1 Major corporations such as Chevron, ExxonMobil, and Shell, as well as oil service companies such as Schlumberger and Fluor, also have a presence in the area—in some cases, a larger presence than at their “home” locations. With oil near $90 per barrel for the majority of 2012, these companies were able to continue high levels of hiring, training, and oil exploration. Increased activity near the Eagle Ford Shale in southwest Texas is also benefiting oil and gas entities located in Houston. In addition to the energy industry, healthcare and shipping play a role in driving strong demand to area hotels.

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