HVS In Focus: San Francisco Hotel Market - Best of the West
By Aaron Solaimani, Associate with the San Francisco office of HVS
occupancy, and per-key transaction prices at peak levels. What are the current development and transactions trends? How might the continued lack of new inventory combined with record average daily rates affect future demand? San Francisco's lodging market continues to surge with record double-digit RevPAR growth driven by growth in average daily rates. It ranks 3rd in the nation for occupancy rate.1 Year-over-year occupancy was up nearly 3% and ADR increased over 9% in 2013, leading to a RevPAR increase of more than 13% as compared to the prior year. San Francisco County saw $876 million in transaction activity in 2013, up from nearly $750 million in 2012.