Upscale Hotel Development Brisk Despite Economy

SAN FRANCISCO-Top tier hotel development remains brisk in the Bay Area despite reports of lagging first-quarter occupancy rates and rising energy bills. Remaining committed to primary markets like San Francisco in spite of the national drop in hotel investments are backers of such multi-million dollar projects as the Four Seasons Hotel and condo development on Market Street and the planned St. Regis hotel and residences at Third and Mission streets.

The Four Seasons and the St. Regis hotel projects have some advantage in an economic slump. For one thing they are under construction and protected to some extent from recent investor jitters. In addition, both projects include other uses, namely residential, to help bear the costs.

The 40-story St. Regis, which is being developed by the Starwood hotel chain, will include 100 residential condominiums and penthouses. The 36-story Four Seasons complex, developed by New York City-based Millennium Partners, includes condominiums and retail uses.