Revenues grew at a percentage rate higher than the state average for Longview-area hotels during the third quarter compared with a year ago, and the occupancy rate increased, too, according to a report issued by a hotel consultancy firm.
Source Strategies Inc. of San Antonio said revenues were up 13.8% for the Longview metro and even higher within the city limits of Longview at 19.4% for the quarter ended Sept. 30 compared with 2018. That compared with modest growth throughout the oil patch at 3.5% and 9.7% for the rest of Texas.
Revenues exceeded $11.7 million during the third quarter in the Longview metro area — which includes Kilgore, Gladewater and Gilmer — and neared $9.3 million within the city, according to Source Strategies.
The occupancy rate for the Longview metro area grew to 60% from 53.5% during the third quarter of 2018, Source Strategies said. Within Longview, the rate increased from 54.3% to 61.5%.
“The occupancy rate is well up,” said Paul Vaughn, senior vice president of Source Strategies. Referring to the 60% rate, he added, “That is a great baseline.”
Vaughn said the rate has increased from the mid-50s since he started on the job three years ago. It is still below the state average of 64.2%, he said.
“That means you are seeing a lot more activity,” he said.
C.J. Clayton, a former Longview hotel general manager who now works as the city’s tourism coordinator, said she has not seen the report but credited a good economy and the addition of new businesses for improvements in the local hotel industry.
“I think all of us are seeing the trend” of higher occupancy, Clayton said.
Clayton said occupancy tax revenues, informally known as “bed taxes,” are used for promoting more business activity in Longview.
“It helps us to go out and try to bring more business in,” she said.
The report said the city has 2,215 hotel rooms and the metro area has 2,999 rooms.