Travelers spent $272M on RGV lodging in first half of 2026. See where they stayed

Travelers across the Rio Grande Valley spent more than $272 million on lodging between January and June, up 15% between 2025 and 2026, according to Texas Comptroller hotel occupancy tax data analyzed by the Rio Grande Valley Business Journal.

South Padre Island was the most popular destination for overnight stays, and travelers often chose short-term rentals rather than hotels, particularly Airbnb and Vrbo, according to the data. Vacasa Inc., another international short-term rental company, also had a strong presence on the island.

South Padre Island room receipts grew from $93 million during the first six months of 2025 to $115 million in 2026 during the same time frame — that’s an increase of nearly 24%. 

Likewise, room receipts in the city of Brownsville increased by 18% to $31.6 million between January and June 2026. 

The Courtyard by Marriott on South Padre Island saw an increase of 8.4% over the year in total room receipts to $5.6 million. 

That hotel is owned and operated by Modern Resort Lodging LLC, a company affiliated with Ruby Red Hospitality, which is controlled by McAllen-based hotelier Barry Patel. 

Ruby Red Hospitality controls several other popular hotels in the Valley, including the Hilton Garden Inn on South Padre Island, La Copa Inn Resort, La Quinta Inn & Suites on South Padre Island, Embassy Suites by Hilton in McAllen, Aloft by Marriott, Homewood Suites by Hilton, and Sapphire on South Padre Island. The company also operates Airbnb rentals on the beach. 

Beyond Ruby Red Hospitality’s portfolio, several other lodging operators also rank among the most popular places to stay in the region, according to hotel occupancy tax data. 

Margaritaville Beach Resort is another popular locale on South Padre Island. The resort is owned by Key Foster, CEO of Highline Real Estate Partners, based in Birmingham, Alabama.

Margaritaville Beach Resort increased to $5.1 million in room receipts through June, up 4.4% over the year in 2026. 

Isla Grand Beach Resort saw a 15.6% increase in total room receipts to $4.1 million. 

Other high-performing properties on the island include Isla Grand Beach Resort, which is owned and operated by SPI Management Co. The company’s president is South Padre Island attorney Kathy Cunningham. 

Holiday Inn Beach Resort is owned by Innjoy Hospitality LLC, run by Nitin Kasan of McAllen-based Oceangate Hotel and Development Company.

Padre Island Rentals is owned by Robert M. Goodman Associates Inc., led by President Thomas W. Goodman II, who also serves as a commissioner for the city of San Benito.

Padre Island Rentals saw a 2.5% increase to $4.2 million through June 2026 over the year. 

Short-term rental operators are also ranked among the most popular places to stay overnight, accounting for $48 million in total room receipts during the first six months of the year, up nearly 80%. The short term rental tax data is not a perfect data set because some operators file on a monthly basis while others file quarterly, 

Airbnb, for example, saw a 154% increase in total room receipts value between January and June 2025 and June 2026, totaling $27 million on South Padre Island alone. 

Meanwhile, Airbnb room receipts were up 24% in Brownsville to $4.6 million. McAllen saw a 19% increase to $4.1 million, Port Isabel rose 28% to $2.9 million and Edinburg jumped 30% to $2.2 million.

There are many other short term rental companies, whether locally owned or even international operators such as Vacasa, operating at South Padre Island, but there’s some fragmentedness parsing out the short term rental data because there’s a few different variables and different names for rentals. 

Hotel occupancy data and revenue per available room are other indicators for the hotel industry which shows profitability as opposed to tax revenue collected. It’s possible that higher hotel taxes collected could be tied to higher prices as opposed to fuller hotels and short-term rentals. But the hotel and short-term rental occupancy data is more fragmented than hotel tax data, especially with so many short-term rentals. So hotel taxes are one indicator, especially for how the taxes may affect city collections, but not the only one.