Business & Real Estate

Sacramento-area hotels finished summer season with strong numbers

Sacramento-area motel and hotel operators closed out the 2016 summer travel season with year-over-year improvements in all three major categories, according to a new report from CBRE Hotels in San Francisco.

The average daily room rate for area hotels in September was $119.33, up 5.2 percent from $113.41 in September last year. Average revenue per available room was $93.40, up 6.5 percent from $87.71 a year ago.

The area’s occupancy rate was 78.3 percent in September, compared with 77.3 percent in September 2015.

Hotel industry analysts say 70 percent occupancy is considered the point at which hotels can comfortably raise rates.

Through nine months of 2016, average occupancy at local lodgings was 76 percent, down slightly from 77.4 percent through three quarters last year. However, the average daily room rate of $118.24 during that period was up nearly 7 percent from $110.86 in 2015, and average revenue per available room was $89.88 this year, up almost 5 percent from $85.79 in the year-ago period.

Mark Glover: 916-321-1184, @markhglover

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