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Staff seeks event feasibility study after hotels report three-year occupancy decline; $75,000 in HOT tools proposed for 2026

October 06, 2025 | Lakeway, Travis County, Texas


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Staff seeks event feasibility study after hotels report three-year occupancy decline; $75,000 in HOT tools proposed for 2026
City staff reported Oct. 6 on recent work with local hotels and asked council to proceed with planned event-market analysis and technology purchases aimed at increasing visitor stays.

Assistant City Manager Ashby Gredman said staff convened a hotel summit with three of five local hotels (the other two met separately) to review hotel occupancy, incentive programs and marketing needs. Staff provided three-year occupancy and revenue-per-available-room data (hotel names removed for competition concerns) that showed about a 21% decline in occupancy and approximately a 7.5% reduction in average daily rate across the sample. Gredman and the hotels told council that the grants the city has offered help but do not by themselves drive significant occupancy; hotels requested large events to generate stays.

Council budget direction for 2026 includes $50,000 for an event feasibility study and $25,000 for Placer.ai (cell‑phone-derived foot-traffic analytics). Staff said the feasibility RFP will identify events and venues that could increase “heads and beds” and quantify expected hotel demand and sales‑tax impacts. Staff also said it will continue coordination with the hotel lodging association on group incentives, stay-and-play promotions and wayfinding/visitor signage tied to future public spaces.

Council members discussed marketing, possible expansion of existing events and inclusion of short-term rental operators in future outreach; staff said it will follow up with hotels and short-term rental stakeholders and return with scopes for the RFP and proposed marketing efforts. No formal council action was taken beyond staff direction to proceed with the planned RFP and vendor procurement steps described in the 2026 budget.

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Scribe from Workplace AI
Scribe from Workplace AI