Current Events in the Hospitality Market

There has been some mixed news lately regarding the state of the hospitality market.  On the positive side, the first new construction of a full-service hotel on the west coast since 2008 is underway in Carlsbad, California, with the new Hilton Carlsbad Oceanfront Resort and Spa.  As some secondary hospitality markets continue to struggle, this is a good sign for the full-service segment, which has suffered significantly since 2007.  This particular property benefits from a good beachfront location on eight acres of land which took nearly a decade to assemble.  By contract, the most recent Bay Area hotel to open was the 162-room Courtyard by Marriot in Campbell, which began operations in February 2010.

However, the luxury market still continues to struggle, as the Claremont Hotel and Resort in Oakland filed for Chapter 13 Bankruptcy last week as reported by the San Francisco Chronicle.

It remains to be seen what will become of the luxury market, but it appears that Northern California’s upscale limited-service and focused-service hotels have seen overall, but modest, improvements in RevPAR in 2010 from 2009.

Brian Rapela, MAI
Vice President
Hulberg & Associates, Inc.

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