HOUSTON — New hotels are rising across the city as demand recovers and investors return.
Houston currently has 152 hotels in the development pipeline, representing approximately 15,846 rooms, according to Rahul Bijlani, senior vice president of CBRE’s Hotels group. While not every proposed project will necessarily reach construction, a substantial number are actively moving forward, signaling strong confidence in the Houston hospitality market.
Speaking at the CBRE press luncheon, Bijlani highlighted the city’s improving fundamentals. Houston’s economy has added more than 100,000 jobs in the past year, driving renewed demand for lodging and supporting a hotel-sector rebound.
“Houston’s long-term economics look good. But better than good — they look great,” Bijlani said, noting that increased hiring and corporate activity are attracting both business travel and investment.
CBRE’s hotels team has completed eight hotel sales in Houston so far this year, reflecting growing investor interest in the Bayou City. “We’ve seen capital coming in from out-of-state and out of the country,” Bijlani added, underscoring the breadth of buyer demand.
The market’s recovery follows a period of decline tied to weakness in the energy sector. Between mid-2014 and early 2016, West Texas Intermediate crude prices dropped from around $100 per barrel to below $30, which curtailed energy-related travel to Houston and weighed on hotel performance. Bijlani estimated that a full recovery could take until 2021, though improving hiring trends are pushing the market in the right direction.
New construction is supporting supply growth even as demand rises. “Demand is going up in Houston, but supply is going up faster,” Bijlani said, noting that a substantial wave of openings will temper how quickly occupancies and rates normalize.
Recent CBRE transactions
CBRE has recently completed multiple deals in the Houston area, including two notable hotel sales:
Best Western Plus Houston North — Located at 14753 North Freeway near East Airtex Drive, the 52-room Best Western Plus Houston North was sold by JPM Airtex LLC to Sky Light Hospitality LLC. Michael Yu, Rahul Bijlani and Tyler Bean led the CBRE team on this transaction.
Holiday Inn Express & Suites Missouri City West — The 84-room Holiday Inn Express & Suites at 5007 State Highway 6 in Missouri City was acquired by Illinois-based Yeluh, LLC from MC Hotels, LLC. CBRE brokers Michael Yu, Rahul Bijlani and Agrama Mannapperuma managed the sale. Yu noted that this was a forward sale: the hotel was placed under contract before construction finished in August. Forward sales are becoming more common as developers monetize newly built assets early and reinvest proceeds into fresh projects, while investors capitalize on immediate exposure to brand-new properties.
These transactions reflect a trend of active capital deployment into Houston’s hospitality market, as both domestic and international buyers pursue growth opportunities aligned with the city’s improving economic outlook.