Convention Center & Hotel Taxes — Houston FY2027 Budget

The key facts

$1.43B

Total convention bond stack (Series A–D combined)

1.09x

Debt service coverage on Series D — only 9% margin above what's needed just to make the payment

$15.7M

Hotel Occupancy Tax shortfall in the March 2026 monthly financial report, before FIFA

Texas cities (Dallas, Austin, San Antonio, Fort Worth) competing for the same convention dollars right now

About $146M of Hotel Occupancy Tax flows into the General Fund each year — the same pot that pays for police, fire, libraries, and parks.
If hotel revenue collapses (it dropped 30%+ during COVID), the City has an implied ‘moral obligation’ to find money elsewhere to keep those bonds current.
That ‘elsewhere’ is your property tax, your sales tax, and your utility bills — the same revenue base the new fees already lean on.
FIFA 2026 helps for one summer. The structural question is whether HOT growth in 2027–2030 supports the full $1.4B bond stack as peer Texas cities chase the same dollars.

“

Series D needs 91.7 cents of every pledged dollar just to service its debt. There is almost no margin.

— S&P Global Ratings analysis of the Houston convention bond stack

Watch the monthly financial report

Hotel Occupancy Tax collections are reported every month. A multi-month shortfall is the early warning sign.

Ask about the FIFA bump assumptions

How much of the FY28–FY30 forecast assumes sustained FIFA-style hotel revenue? What happens when the tournament ends?

Track rating agency actions

Two of three agencies (Fitch, S&P) already revised Houston's outlook to negative in 2024. Watch for further downgrades on the convention tranches.