Embassy Suites Frisco Hotel and Convention Center

Embassy Suites Frisco Hotel and Convention Center, 7600 John Q Hammons Drive

Frisco’s hotel occupancy rate remains lower compared to the previous year as the city moves forward into the fall season. 

Visit Frisco Director Marla Roe presented hotel occupancy numbers for the 2020 fiscal year Nov. 10 during a joint meeting for Visit Frisco and the Frisco City Council. 

Starting in October 2019, Frisco’s monthly hotel occupancy rate for the 2020 fiscal year had been closely following numbers for the previous year until March, when hotel occupancy for the month fell to 31.6% compared to the 72.8% occupancy in March 2019. 

Monthly hotel occupancy hit an all-time low in April at 11.2%, but began steadily recovering through August, where occupancy landed at 37.5%. The August rate still fell below the 59.4% hotel occupancy rate reported for August 2019. 

Weekly hotel occupancy numbers provided by Visit Frisco also show a general increase from early July through late August. Numbers for July through August 2020 show a peak at 50% for Aug. 30, the same occupancy reported for that time in 2019.  

However, September and October weekly numbers showed another general decline over time in hotel occupancy going from the 50% figure at the end of August and dipping down to 30% in mid-October. 

By mid-October in 2019, Frisco hotels had reported a 70% weekly occupancy rate. 

 “You can see the trend is down a little bit,” Roe said at the meeting, “and it is that way nation-wide, so it’s not just us.”  

Those numbers could impact the city’s upcoming Hotel/Motel Tax annual revenues.Texas law allows revenue from the tax to be used to promote tourism and the convention or hotel industry, according to the Texas Comptroller website.  

A portion of funds from Frisco’s Hotel/Motel Tax revenues have also previously gone to support the Frisco Association for the Arts grant program.    

For the 2018 fiscal year, Frisco saw about $6 million in Hotel/Motel Tax revenues, according to Roe’s presentation. The city collected about $6.6 million for the 2019 fiscal year.  

Roe’s presentation showed just under $4 million in Hotel/Motel Tax revenue for the 2020 fiscal year. Projections for Fiscal Year 2021 were even lower. 

“It’s not looking good, but our plan is to update this quarterly,” Roe said at the meeting.  

The presentation projected the city would get $3.4 million from the Hotel/Motel Tax for the 2021 fiscal year. 

“Because we had six really good strong months in FY20, that’s why we’re looking at being lower in FY21,” Roe said. 

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