The hospitality sector in Northern California has been experiencing a surge in investment activity over the past year, with 48 hotel operations registered. This is higher than the three-year average, and reflects the continuous growth in business and group travel. The markets with the lowest occupancy for the month included New Orleans (57.2%) and Phoenix (57.3%), while the top 25 markets showed higher occupancy and Average Daily Rate (ADR) than all other markets. Northern California is home to a wide range of hotels, from high-end to cost-effective options.
According to PKF Consulting, occupancy rates and room rates rose at hotels in Northern California in May compared to the same month a year earlier. Founded in 1985, STR is a global leader in hospitality data and analytics, with offices in 15 countries including North American headquarters in Hendersonville, Tennessee, an international headquarters in London and an Asia-Pacific headquarters in Singapore. The average occupancy rate of rooms at inns & suites in Northern California is highly dependent on the type of hotel and its location. Generally speaking, luxury hotels tend to have higher occupancy rates than budget hotels. Hotels located near popular tourist attractions or business hubs are likely to have higher occupancy rates than those located away from these areas. In addition to location and type of hotel, other factors that can influence occupancy rates include seasonality, special events, and marketing efforts.
For example, hotels located near ski resorts may experience higher occupancy rates during winter months when people are looking for ski vacations. Similarly, hotels located near convention centers may experience higher occupancy rates during large conventions or trade shows. Overall, the average occupancy rate of rooms at inns & suites in Northern California can vary greatly depending on the type of hotel and its location. However, according to PKF Consulting, the average occupancy rate for all hotels in Northern California was around 70% in May 2021.
