SAN FRANCISCO—Because land prices are harder to justify for certain property types, hotels are springing to life and rebirth. There is a hotel boom underway in San Francisco with a number of openings and renovations taking place in this year alone.
The Proper San Francisco hotel opened this month with a new Kelly Wearstler brand hotel opening in Mid-Market with three restaurants and rooftop bar. The Virgin Hotel and Yotel Hotel are also opening in 2017 and the Standard Hotel just announced a San Francisco property coming in 2018 or 2019.
“During the past 10 years, there has been very little hotel product. And, there is a reinvestment in hotels because it is harder to justify land prices for office and multifamily,” Stephen Yang, founder of Point Hospitality Group tells GlobeSt.com. “Within five years, there will be some catching up with new properties and renovations. The demand for San Francisco continues to grow from leisure travel, conventions and some tech-related business travel.”
The Tilden Hotel was also completed in March 2017. The hotel is a Point Hospitality Group property led by Yang, who can count The NoMad and Ace Hotel Palm Springs among the feathers in his cap during his tenure with Square Mile Capital Partners, a controlling investor in both projects.
Tilden is a bridge between Union Square and the up-and-coming Tenderloin. The new hotel redesign has a restaurant and bar called the Douglas Room. Tilden uses a minimalism design in its residential-inspired lobby and sophisticated guestrooms.
The Laurel Inn renovation was completed on April 1 of this year in Presidio Heights. The hotel redesign is the brainchild of former Airbnb exec Chip Conley offering an extended stay environment with a luxury feel and hotel amenities. The boutique hotel is near Golden Gate Park, Golden Gate Bridge and the Presidio.
On the heels of a $4 million restoration completed a mere four years ago, the historic Galleria Park Hotel, a Joie de Vivre property in the Financial District, is almost complete with a top-to-bottom renovation and redesign. The public spaces of the boutique hotel renovation will be completed in December 2017, while the pied-à-terre hotel rooms and suites were finished July 2017.
Situated at the apex of Japantown and the shopping and dining mecca of Pacific Heights, Joie de Vivre Hotels' boutique Hotel Kabuki will unveil the completion of a $29 million renovation in fall 2017 (half of the rooms and public spaces were completed this month and the final half of the rooms are slated for completion by November). With a blend of Eastern and Western influences, Hotel Kabuki offers downtown accommodations, event venues and hotel packages.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
