How The Hotel Business Has Changed In Northern California
The Sacramento hotel industry has a surprisingly similar story to that of many Americans who were negatively impacted by the financial downturn of 2008. Overzealous expectations and overeager spending led to trouble for the Northern California City's hotels in the last seven years.
High rates of occupancy allow hoteliers to charge higher daily rates, as a diminished supply means an increased demand. For Sacramento, quite the opposite has been true as two new hotels were built downtown and a handful of hotel properties in the suburbs were built just before the Great Recession hit. This has resulted in an overabundance of rooms in the last seven years, meaning that occupancies have been low and daily rates have been driven down.
This is especially problematic for Sacramento, as its neighboring Northern California cities have continued to be tourist destinations. While Monterey/Carmel has an average daily room rate of $323.30, San Francisco's rate is $294.11 on average and Napa County hotels are able to charge an average of $309.09. Each of these markets has seen an increase in room rates in the last year.
Sacramento also saw an increase of 4.4 percent in their daily rates, which resulted in an average daily room rate of $104.60. Fortunately, the city saw occupancy rates for the first nine months of 2014 go up 70 percent from the first nine months of 2013. Sacramento hoteliers hope to see a continuation of this trend.
If you find yourself stuck in a stale hotel market, you can beat the statistics by offering a stellar property to your guests. Make your hotel the talk of the town with a flawlessly beautiful remodel.
For a general contractor with hospitality experience who can come alongside you to ensure your investment in a remodeling project will result in a worthy return, contact Parkwest General Contractors for all of your hotel construction needs. With minimally obtrusive and time-consumptive processes, our team can execute your upcoming project with expert-level craftsmanship. Do not hesitate to call us today!
