The evolving landscape of downtown San Antonio with ongoing hotel constructions.
San Antonio faces a potential hotel construction freeze as city officials respond to an oversaturation of hotel rooms in the downtown area. With ongoing projects and declining occupancy rates, there is a push to pause new developments to reassess urban planning and promote residential growth. The city plans to strike a balance between current hotel projects and the need for housing, with concerns over preserving its historic significance amidst new proposals.
San Antonio, a city known for its rich history and vibrant cultural scene, finds itself in a situation where hotel developments are multiplying faster than the available visitors. With construction works continuing at the Monarch Hotel site at the northern end of Hemisfair, city officials are stepping in to call for a moratorium on any new hotel constructions downtown. The idea is to take a breather and reassess the situation as the downtown area is currently seeing an oversaturation in hotel offerings.
At the heart of the matter is an oversupply of hotel rooms in downtown San Antonio. With several hotels currently under construction—four of them adding 696 rooms, and another twelve in the planning stages that could bring an additional 1,875 rooms—it’s easy to see where the concerns arise. Meanwhile, the average occupancy rates haven’t quite bounced back to pre-pandemic levels. In fact, another round of challenges is emerging, ranging from inflation to the intense summer heat typical of Texas, alongside stiff competition from other cities.
The city council is being urged to pause new hotel developments to explore more promising opportunities for residential and commercial growth. In line with this, the “Decade of Downtown” initiative, which aimed to boost housing in the heart of the city, hasn’t delivered the significant results that were anticipated. The arrival of new residents has contributed positively by driving increased business and investment, yet hotel projects continue to encroach on the limited land available for housing development.
One particular proposed development location has raised eyebrows. An empty lot across from Main Plaza, eyed by an Austin developer and a Georgia company for a new Residence Inn, is considered inappropriate due to its historic significance. Many locals are questioning if this is the right move for a city keen on preserving its cultural roots.
Interestingly, as San Antonio prepares for a potential tourism boom linked to the total solar eclipse on April 8, 2024, it looks like there might be a silver lining on the horizon. Visit San Antonio has been actively marketing the city as one of the prime spots for eclipse tourists, and expectations of occupancy rates rising as high as 80% are making waves. Indeed, many hotels are already booking up quickly, especially those situated within the path of totality.
With the anticipated increase in tourism, there’s much optimism about the economic benefits that could flow into the local economy, particularly in terms of local and hotel taxes. That said, while leisure travel bounces back quickly, convention business remains slow. Some clients are opting for larger cities, or even online options, for their events instead.
While the overall average occupancy rate in San Antonio was recorded at 61.5% in 2023—a slight dip from 2022—revenue per room also saw a minor decrease from $79.90 to $79.20. With plans on the table for upgrading the Alamodome and the Henry B. Gonzalez Convention Center, there’s a clear understanding that to stay competitive, the city must evolve. A number of new projects are bubbling beneath the surface as well, like the development of a new 10-story hotel with 347 rooms in downtown.
In light of all factors, there is a balancing act to be played between building for the future and ensuring that existing businesses thrive amidst a rapidly changing landscape. The city’s local planning perspective is steering toward discouraging new developments in favor of those that better align with the community’s residential needs.
As San Antonio navigates its challenges and opportunities, the conversation surrounding new hotel developments is just beginning. Will the city hit pause and reassess, or will the developments continue to roll out? Only time will tell!
San Antonio Prepares for Festive New Year’s Eve 2025
Historic San Antonio Buildings Hit the Market After Renovation Plans
New Development of 350 Upscale Apartments in San Antonio
San Antonio Prepares for New Year’s Eve Festivities
News Summary San Antonio is alive with holiday cheer this season! Local businesses and events…
News Summary In a tragic turn of events, New Year’s Eve celebrations in Hidden Rock,…
News Summary San Antonio celebrated the New Year with the joyful arrival of its first…
News Summary San Antonio residents are urged to recycle their broken Christmas lights instead of…
News Summary Moo Deng Thai Restaurant has officially opened in San Antonio's Beacon Hill neighborhood,…
News Summary Many local shops in San Antonio will be open on New Year's Day…