San Antonio officials outline hotel-occupancy tax revenue, convention center and Alamodome budget needs

Justina Tate, the city’s budget director, told the City Council on Sept. 2 that the city’s hotel occupancy tax (HOT) rate is 16.75% and that “the city receives 9%.”

Tate said the city expects HOT collections to rise about 6.4% in fiscal 2025 compared with 2024 and to rise about 2.8% in fiscal 2026, driven in part by increased collection from short-term rentals coming into compliance and a modest rise in average daily room rates.

Patricia M. Quis Cantor, director of the Convention and Sports Facilities Department, presented the department’s proposed FY2026 budget and a multi-year picture of facility use. Quis Cantor said the Henry B. González Convention Center and the Alamodome are operating near practical capacity and argued the city must invest now to remain competitive with other Texas cities that are expanding or rebuilding their convention facilities.

"Investment isn't just important. We believe it's urgent," Quis Cantor said.

The department proposed a total facilities budget of about $91.9 million for FY2026. That package includes approximately $23.3 million in capital improvement projects for the convention center and Alamodome—about $20 million for the convention center and $3.3 million for the Alamodome—and an estimated $11.5 million transfer from the HOT fund to support operations.

Quis Cantor walked council through planned capital projects she described as already started or underway: elevator and escalator replacement in the older portion of the convention center ($8.3 million), HVAC renovations ($3.9 million), West Building Park entrance remodel ($2.1 million), fire-panel and plumbing work, carpet replacement and restroom renovations, and a set of Alamodome projects including warehouse and arena floor box replacements and catering equipment upgrades. She said many of the projects are necessary to address original infrastructure and maintenance needs.

Quis Cantor also described revenue changes and fee proposals: the department recommends a 3% increase in facility rental fees at the convention center, a per-ticket fee increase at the Lila Cockrell Theatre (presented in the slide deck as increasing from a $1–$2 band to a $3–$5 band per ticket), and a $2-per-ticket Ticketmaster buyout fee for certain large sporting competitions that would allow events to use alternative ticketing during need periods.

Council members asked for more data to justify expansion and capital urgency. Mayor Jones and several council members requested follow-up materials showing the evidence that specific investments would make San Antonio competitive against other Texas cities with larger redevelopment plans. Council members also asked the department to provide written detail on which capital projects could be deferred and what the trade-offs would be.

The presentations were information and Q&A only; council did not take any formal votes on the items during the session.

Quis Cantor closed by stressing the economic role of the facilities and the risk of falling behind competitors if investments are not timed to match booking windows for large conventions.

Ending: Councilmembers asked staff for follow-up analyses on HOT allocations, the timing and urgency of the $23.3 million in capital projects, the breakdown of the convention/Alamodome budget items, and the share of hotel room nights attributable to convention business; the department committed to providing written responses.