Hotel Market to Rise During Coming Years
- Sep 02, 2011
The city has been landing decent punches with its real estate deals and projects these past few months, but it might have missed out on a potentially rewarding trend. Bloomberg‘s recent overview of the area found Nob Hill being overlooked even while San Francisco’s hotel market has been booming during the past year.
This comes in the face of significant investment in new hotel properties: a whopping $780 million, according to data from Atlas Hospitality Group. That was an impressive 75 percent over the previous year.
Projections for the next few years may bode well for the city’s existing hotels, though. The current supply of rooms stands at around 33,000, and with no new projects in the pipeline, occupancies are likely to rise, which will offer opportunity to increase rates. Furthermore, revenue on a per-available-room basis is set to rise by 15 percent, according to San Francisco-based real estate firm PKF Hospitality.
In other real estate news, Hangar One has been stripped of its dignity, and of its door panels. The massive structure designed to house giants such as the U.S.S. Macon was built in 1933 and is now going to be dismantled. The work is being supervised by the U.S. Navy, MercuryNews.com writes, and will transform the Naval Historic Monument into a defaced structure. The dismantling comes as a result of the threat the corrugated metal walls pose to the environment, as they contain lead paint, asbestos and PCBs.