Home Front

A blog about the economy and the Sacramento-area real estate market.

January 21, 2009
Capital's hotels see more decline than rest of Northern Calif.

It must be due to an overall decline in economic activity, and possibly to less travel to and from our stressed-out Capitol building. But it  keeps getting cheaper and easier to get a Sacramento hotel room.
Just arrived today is a survey from industry analyst PKF Consulting, showing that hotels in the Bay Area and much of Northern California have outperformed ours here at home.

This data is for January through November, 2008:

  • The 2008 average room rate was $98.74 in the capital, down 2.3 percent from $101.02 in 2007.
  • Northern California room rates rose an average of 3.1 percent over the same time in 2007 - from $149.19 per night to $144.69 per night, according to PKF. Much of this reflects higher rates charged in San Francisco, the Bay Area and Napa Valley.
  • Room occupancy in Sacramento also slid from the previous year. Capital hotels reported filling 66.9 percent of their rooms the first 11 months of 2008. That was down 2.5 percent from 68.7 percent the same time in 2007.
  • Northern California hotels as a whole reported filling 74 percent of rooms, down 1 percent from 74.8 percent in 2007.
  •   Occupancy in Northern California was strongest in rooms priced $175 or more per night. PKF reported that 79 percent of those rooms were occupied during the year. Lowest, at 71 percent, were rooms priced between $75 and $125.

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