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San Antonio’s hotel market faces slowdown as supply set to outpace weak demand

Texas city’s hotel metrics face strain as more than 1,000 rooms will open by 2026
The Pearl District in San Antonio’s downtown. (The Pearl, Visit San Antonio)
The Pearl District in San Antonio’s downtown. (The Pearl, Visit San Antonio)
CoStar Analytics
September 23, 2025 | 9:00 P.M.

The San Antonio hotel market remained in a holding pattern throughout August, with performance metrics reflecting a challenging operating environment. Revenue per available room, or RevPAR, over the 12-month average declined 1.7% year over year, driven primarily by a 3.4% drop in occupancy. The average daily rate, or ADR, increased by just 1.8%, suggesting that hoteliers have largely maintained rate integrity while demand has weakened.

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