Search
 

InterContinental Hotel Opens into Healthy Market

SAN FRANCISCO-The largest hotel to open in this city in 20 years does so at a good time, according to PKF Consulting.

By Brian K. Miller | Updated on February 27, 2008

SAN FRANCISCO-The 32-story InterContinental Hotel San Francisco opened for business Thursday at the corner of Fifth and Howard streets. At 550 rooms, the estimated $200-million development by Continental Development Corp. of Atlanta is the largest hotel to open in San Francisco in 20 years.

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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.