The hotel is opening in a good location -- on the same block as the Moscone West Convention Center – and into a healthy hospitality market. San Francisco hotels had an average occupancy rate of 77.9% in 2007, up 3% from 2006 and well above the nationwide average of 63%, according to PKF Consulting, which tracks the hotel business. In December, PKF predicted 7.4% RevPAR growth for San Francisco hotels in 2008, which is 300 basis points higher than the average expectation for hotel properties nationally.

"It's opening into an extremely strong market," Tom Callahan, the co-president and chief executive officer of PKF Consulting in San Francisco tells GlobeSt.com. "In its first year management's estimate and our estimate is for occupancy above 70%, which is pretty unusual for a 550-room hotel. Generally, they ramp up much more slowly."

Helping the hotel hit that mark will be convention-goers. For 2008, more than 977,000 room nights have been booked for convention-goers to date, up from about 770,000 in 2007, and nearly 900,000 rooms have been booked for 2009 convention-goers, according to PKF. "Pre-bookings are outstanding," Callahan says. "The next three- to four years look to be great years for the convention calendar."