Business & Real Estate

Occupancy rate at Sacramento-area hotels dips, but revenue rises

Coming off a strong 2015, Sacramento-area hotels saw a dip in the occupancy rate in January, but operators saw year-over-year improvement in key economic segments.

The average occupancy rate of area hotels in January was 63.8 percent, down slightly from 65.1 percent in January 2015, according to CBRE Hotels in San Francisco.

Historically, January is a slow month for the region’s hotel/motel industry. By comparison, the area’s average occupancy rate for all of 2015 was 74.2 percent.

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

The annual decline in the occupancy rate did not translate to a loss of dollars.

CBRE said the average daily room rate at area motels and hotels in January was $115.56, up 7.9 percent from $107.11 in January 2015. Average revenue per available room to start 2016 was $73.67, up nearly 6 percent from $69.68 in the year-ago period.

Mark Glover: 916-321-1184, @markhglover