A lot of the articles talking about a lack of hotels and just proposed hotels in general in Austin, always bring up SXSW and ACL, and how a lack of hotels created a mad dash for any available ones. This last SXSW, the city came up 500 rooms short. That's a big number, but really it isn't. We have at least 2,000 hotel rooms planned just for downtown alone. Really the problem is that developers can't get the bank loans they need to start their projects.
And then there's this:
Too many hotels, too few guests
By Valentino Lucio - Express-News
Published 07:00 p.m., Friday, September 10, 2010
The number of downtown San Antonio hotels has jumped almost 30 percent this decade, which has Hector Venegas, general manager of the Menger Hotel, looking for ways to boost revenue and fill rooms.
Supply is overwhelming, Venegas said, and there is no demand. We're basically giving the rooms away to try to cover our expenses.
The City of Austin really needs to push the issue of getting some more hotels built, or we'll risk losing a guaranteed $110 million economic boost every year (SXSW). One of the great things about tourism, particularly these urban type festivals, is that they're clean industry. They create very little pollution, generate a ton of money and then the people go back home.