Tourism, conventions and business travel were all fairly robust in 2008, with the effects of the economic fallout not having a real dramatic impact on San Francisco’s revenue until later in the year. This then managed to boost the city’s hotel occupancy and room rate numbers for the year.
San Francisco fared better than anywhere else in Northern California, and the rest of the nation in December. The city’s room rate daily average for December was almost $168 and occupancy approached 70%, a 7.3% and 8% increase respectively over the same period last year. The improvement is based largely upon the fact that month of December in 2007 was at the front end of the recession’s impact.
Overall, the city of San Francisco fared well during 2008 given that the convention business remained relatively strong and tourism from abroad coming to see San Francisco’s sightseeing attractions and take wine country tours didn’t really change much until late in the year. The daily average room rate for 2008 was $190 with occupancy at 79%, increases of 3.7% and 1.6% respectively. For the year 2009, the market is expected to reverse, with the average daily room rates anticipated to fall by 4%, with occupancy rates declining by 7%.
