The state of Austin's hotel industry

AUSTIN (KXAN) — It's the third-biggest industry in Austin, and it's struggling.

Nearly two years into the pandemic, leisure and hospitality haven't fully bounced back. In Austin, hotel rooms are going for slightly more than half of what they cost in 2019.

Austin Business Journal reporter Parimal Rohit talked with KXAN about when a full recovery is expected to happen.

"In years past, prior to COVID, you would be hard-pressed to find a hotel room anywhere in Austin during South By (Southwest)," said Rohit. "This year, we actually found there are rooms available. For example, the Austin Marriott downtown, they have several rooms available a week or two leading up to the festival."

Rohit attributes a lack of business travel because of the pandemic as a possible cause to a struggling industry.

"We're not seeing as much business travel as years past," said Rohit. "So, hotels across the board are just not seeing major conventions, major companies sponsoring travel to the city. So, we're lacking on that, but what is bouncing back is individual reservations."

Surprisingly, though, Austin is still the best in Texas.

"We may be the fourth-largest metro in the state, we're punching above weight class, so to speak," said Rohit. "Compared to Dallas-Fort Worth or Houston or San Antonio, we're still a desirable city to come to."