2 ms·

“previously robust convention schedule, which meant lower vacancy rates throughout the year and higher-than-average room rates.” They also mention changes in d

“previously robust convention schedule, which meant lower vacancy rates throughout the year and higher-than-average room rates.” They also mention changes in demand due to return to office arrangements, but I wonder how much of this is truly all covid-related. Have the recent slowdowns in Silicon Valley also affected SF? Could it also be that the hotel is a bit crummy?

kelnos 3y ago
Good questions, I wonder as well. The article mentions SF had one of the highest hotel occupancy rates in the country back in 2015, at 84%. In 2022, it had recovered back up to 62%. I wasn't sure what is more normal/average. Looks like in January of this year, NYC's rate was 66%[0], and I would think that being comparable to NYC on a metric like this would be cause for some optimism. So I'm assuming that they were forecasting worse occupancy for the rest of 2023 and beyond, as 62% doesn't sound that bad, at least for pandemic-exit times? Regarding return-to-office, and SF resisting it more than most places, I suspect a significant-enough chunk of hotel bookings comes from employees visiting HQ from remote or satellite offices. If companies are reducing their office presence in SF, I would expect those sorts of visits to decline. Not sure about the quality of the hotel itself; last time I was in there was for a work-related event back in 2015 or so, but I only saw conference rooms and common areas (which were a little dated, but clean and seemingly well-maintained), not the hotel rooms themselves. [0] https://www.costar.com/article/1532005238/new-york-hotels-benefit-from-influx-of-migrants-from-southern-border https://www.costar.com/article/1532005238/new-york-hotels-be...
- rhaway84773 3y ago
  January is probably among the 3 weakest months in NYC tourism though, if not the weakest.

2 ms·

“previously robust convention schedule, which meant lower vacancy rates throughout the year and higher-than-average room rates.” They also mention changes in d

by greggsy 3y ago

kelnos 3y ago
Good questions, I wonder as well. The article mentions SF had one of the highest hotel occupancy rates in the country back in 2015, at 84%. In 2022, it had recovered back up to 62%. I wasn't sure what is more normal/average. Looks like in January of this year, NYC's rate was 66%[0], and I would think that being comparable to NYC on a metric like this would be cause for some optimism. So I'm assuming that they were forecasting worse occupancy for the rest of 2023 and beyond, as 62% doesn't sound that bad, at least for pandemic-exit times? Regarding return-to-office, and SF resisting it more than most places, I suspect a significant-enough chunk of hotel bookings comes from employees visiting HQ from remote or satellite offices. If companies are reducing their office presence in SF, I would expect those sorts of visits to decline. Not sure about the quality of the hotel itself; last time I was in there was for a work-related event back in 2015 or so, but I only saw conference rooms and common areas (which were a little dated, but clean and seemingly well-maintained), not the hotel rooms themselves. [0] https://www.costar.com/article/1532005238/new-york-hotels-benefit-from-influx-of-migrants-from-southern-border https://www.costar.com/article/1532005238/new-york-hotels-be...
- rhaway84773 3y ago
  January is probably among the 3 weakest months in NYC tourism though, if not the weakest.