San Francisco hotel rates tumble
San Francisco hotel rates tumble
Hotels in San Francisco have been hit hard recently by the recession. According to PKF Consulting, average daily room rates fell from $188.17 in July 2008 to $152.84 in July 2009, 18.8 percent decline from a year ago. Hotel occupancy fell from 88.8 percent in July 2008 to 84.2 percent in July 2009, 5.1 percent decrease from a year ago.
San Francisco occupancy rate though remains still strong relatively to the rest of the US. According to Smith Travel Research, nationwide occupancy rate was 64.1 percent in July 2009, 7.3 percent drop from July 2008.
Luxury hotels in San Francisco were hit the most in July 2009. Figures from this period of time showed that average daily rate for the rooms over $200 fell from $340 a room to $251.3, 26 percent decline from a year ago.
From January to August 2009, room prices in San Francisco decreased from $190.21 to $158.08, 16.9 percent decline from the year earlier. Occupancy fell from 79.1 percent for the first seven months of 2008 to 72.6 percent for the same period in 2009, 8.1 percent drop from the year earlier.
Figures for the Northern California region as a whole are slightly better compared to San Francisco. Average daily room rates fell from $151.91 in July 2008 to $127.06 in July 2009, 16.4 percent decline from a year ago. Occupancy declined from 80.2 percent in July 2008 to 72.2 percent in July 2009, 10 percent decrease from a year ago.
SF Business Times-9/30/2009