McAllen-Brownsville, TX - 2025 Q1

The McAllen-Brownsville area in Texas is a vital economic hub experiencing growth driven by leisure, hospitality, healthcare, and manufacturing. Tourism, especially from Mexico, boosts hospitality demand. However, low wages and declining labor force participation pose challenges. The lodging market is considered "risky," ranking low nationally. While some classes show strengths in COVID recovery, challenges include low market capitalization rates and RevPAR changes. Occupancy, ADR, and RevPAR vary across luxury, upper upscale, upscale, upper midscale, midscale, and economy classes, with trends analyzed from 1990 to 2025. Real estate performance across sectors is also evaluated. Click here to view a shortened preview of the report.