A new hospitality study finds The Woodlands needs at least two additional upscale, full-service hotels to meet growing demand for corporate meetings and conventions. Officials say the township has sufficient event space but lacks enough attached or nearby hotel rooms, costing the community hundreds of millions in lost business since 2021.
A recent market analysis indicates that The Woodlands requires a minimum of two additional upscale, full-service hotels to meet the increasing demand for corporate meetings and to remain competitive in the region.
During the meeting of The Woodlands Township board on January 22, Chris Cylke, president and chief operating officer of REVPAR International, delivered a presentation outlining the findings. A recent study commissioned by Visit The Woodlands has revealed that, although the township offers sufficient event space, it falls short in providing an adequate number of hotel rooms within walking distance of meeting venues.
Cylke stated that a majority of planners prefer hotels that are either directly connected to the convention center or located within a brief walking distance, ensuring that attendees do not need to rely on transportation or buses.
Data provided to RevPAR indicates that The Woodlands experienced a loss of 651 business leads from 2021 to 2030, resulting in a potential revenue decline of $174 million. Officials have cited overlapping event dates, excessive rates, and unresponsive clients as the primary factors contributing to the losses.
The township is home to approximately 2,300 hotel rooms, with around 1,300 located in full-service establishments. Cylke reported that occupancy rates typically hover around 70%, experiencing a minor decline during the holiday season. He stated that the addition of two more hotels could potentially yield annual tax revenue for the township ranging from $1.9 million to $3.4 million.
“According to Cylke, The Woodlands boasts a robust transient business community that bolsters hotel occupancy from Monday to Thursday, in addition to a significant group business presence.” He emphasized that events at the Cynthia Woods Mitchell Pavilion consistently fuel the demand for weekend leisure activities.
Township Chairman Brad Bailey underscored the necessity for the community to intensify its endeavors. For many years, The Woodlands Waterway Marriott Hotel & Convention Center was the only facility in the area, but it has now surpassed 25 years of operation.
“We cannot remain complacent with mediocrity,” Bailey stated.
Competition within the region has escalated significantly. Construction commenced in February 2025 on a new convention center at Valley Ranch in New Caney, with an investment of $130 million and a total area of 210,000 square feet. In 2023, the Hyatt Regency Conroe Hotel and Conference Center was inaugurated, featuring 250 rooms and enhanced meeting facilities, which marked a major upgrade to the area’s hospitality offerings.
Board member Shelley Sekula-Gibbs criticized township leaders for having access to similar data in 2022, suggesting they should have taken action earlier. The $100 million proposal to expand The Woodlands Mall with the addition of two hotels and retail space, which had previously received approval, has stalled and is not progressing as anticipated.
“Action is required,” Sekula-Gibbs stated. She emphasized the importance of considering traffic and public transportation in any proposed expansion plans.
Bailey confirmed that the township will refrain from seeking additional hotels unless a comprehensive strategic plan is developed, one that takes into account the long-term effects on the community.
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