-April 5,2021-
SF hotels feel the most pain
San Francisco Bay hotels have seen their revenue fall in a big way through early 2021 with expectations that things are about to get better. This region has been hardest hit in the state but California overall has seen a decline in RevPAR from $114 to $48 on a year to date basis.Revenue per available room (RevPAR) is a performance measure used in the hospitality industry. RevPAR is calculated by multiplying a hotel’s average daily room rate by its occupancy rate.
Through February 2021, statistics offered by by Smith Travel Research show Bay Area hotels revenue as measured by RevPAR have dropped from $150 to $40. The decline measures both loss of occupancy as well as revenue per room as occupancy has also dropped on a year to date basis. The average SF hotel occupancy was 69% in early 2020 compared to 38% in Feb 2021.
SF hotels fetched an average price of $218 per room in February 2020 compared to $108 this February. Add in the lower number of rooms sold and you get the lower RevPAR number.
By contrast hotel operations in Tulare County have fared better as occupancy has stayed around 55% in Feb 2020 as well as Feb 2021. RevPAR has dropped from $61 to $55.
On the coast, San Luis Obispo hotel occupancy has dropped from 62% to 54% year over year. RevPAR has declined from $140 to $80. But performance varies widely with Pismo enjoying higher returns than, say Morro Bay, where RevPAR was $67 in February.