Business & Real Estate

Sacramento hotels packed in 2015

The Citizen Hotel’s Grange restaurant
The Citizen Hotel’s Grange restaurant Sacramento Bee

Sacramento-area hotels had an average occupancy rate of 74.2 percent in 2015, a significant improvement over 72 percent the previous year, according to statistics released Wednesday by CBRE Hotels, formerly PKF Consulting USA, in San Francisco.

The 2015 numbers represent a sharp improvement from 2010, when average occupancy rates at area lodgings were hovering below 65 percent.

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

Economically, area motels and hotels saw year-over-year improvement in two key categories.

CBRE said the average daily room rate at area motels and hotels in 2015 was $110.76, up 7.5 percent from $103.04 the prior year. Average revenue per available room was $82.21, up nearly 11 percent from $74.17 in the year-ago period.

Occupancy numbers were consistently strong throughout the year. In July, for example, the average occupancy rate among area hotels was 78.1 percent.

The Sacramento Convention & Visitors Bureau pointed to a range of factors that helped boost the fortunes of area motel/hotel operators last year.

That included the popularity of the Republic FC soccer team, national media coverage of Sacramento’s farm-to-fork initiative, Sacramento hosting a leg of the Amgen Tour bike race and the U.S. Senior Open professional golf tournament in June last year at Del Paso Country Club.

The bureau also noted that Sacramento had an extraordinarily strong convention year in 2015.

Analysts are expecting more in 2016 as the Golden 1 Center opens this fall in downtown Sacramento, with new lodgings and retail infrastructure being constructed nearby.

Mark Glover: 916-321-1184, @markhglover