Business & Real Estate

Sacramento-area hotels wrap up first quarter with robust March numbers

A strong March helped Sacramento-area hotels exceed first-quarter 2014 numbers in three key sectors, according to San Francisco-based hotel industry tracker PKF Consulting USA.

PKF said the average occupancy rate among area hotels in March was a robust 79 percent, up nearly 5 percentage points from 75.3 percent in March last year. The average daily room rate in March was $113.36, a 6.4 percent gain over March 2014. Average revenue per available room in March this year was $89.54, up nearly 12 percent from $80.23 in the year-ago period.

Quarterly year-over-year improvements were seen across the board. Average first-quarter occupancy at area hotels was 71.5 percent, up 2.6 percent from 69.6 in the opening quarter of 2014. The average daily room rate was $110.78, up about 5 percent from $105.57; revenue per available room in this year’s initial quarter was $79.17, up 7.7 percent from $73.53 last year.

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

San Francisco hotels led the Northern California region in March, with an average occupancy rate of 85.2 percent and average revenue per available room of $220.60.

  Comments