The Depressed San Francisco Hotel Market: Report
SAN FRANCISCO, Calif. (KRON) – A new report says the San Francisco hotel market is in depression – hotel rates falling more sharply than the rest of the country.
Jon Handlery’s family has been in the hotel business for generations.
He has seen a sharp drop in the number of guests checking out the pandemic and the amount of money he can charge per night.
In 2019, the average room at Handlery Union Square, Hotel Hillary was $ 255 a night. Now it’s $ 135 a night and the occupancy rate has also dropped 60%.
âI don’t think I’m the only one in the same situation,â Handlery said.
A new report from the American Hotel and Lodging Association indicates that the San Francisco hotel market is in a state of depression with revenue per available room down 70% from May 2019 to May of this year. While the US hotel market as a whole is considered to be in recession, down 22%.
As for knowing what explains the deeper decline of the city …
âWe’re a very convention and meeting-driven city and all because all the conventions and meetings have been canceled for all 21, that takes a huge leg off the stool if you want to call it that. The other major market is the international visitor. They don’t come little to the United States in California, so now you’ve lost two legs on the three-legged stool.
The domestic traveler looking to get away is the last stop he counts on, but Handlery says even this company is being hurt by viral videos like this illustrating crime under control in San Francisco.
âWe all see what’s going on in the streets, whether it’s Neiman Marcus, whether it’s the closing of 17 Walgreen stores, Target cutting the hours and just the whole thing seeing you on the street, no, everything is fine.”
He expects more people to check in as conventions return and international travelers return, but he doesn’t expect to see business rebound until 2023.