June 30--The Sacramento-area's motel and hotel operators are well on their way to another strong year in 2016, according to the latest report released by CBRE Hotels in San Francisco.
The average daily room rate for Sacramento-area hotels in April was $119.57, up 5.4 percent from $113.44 in April last year and the highest in at least a decade, according to records.
Catherine Bolstad, a CBRE director who previously has cited an improving economy and relatively high employment for boosting Golden State lodgings numbers, said: "That is a high rate for Sacramento...The year is going well so far."
Local motel/hotel operators were filling rooms at a brisk rate in April, which historically lags behind the prime summertime vacation months.
CBRE said the average occupancy rate of area hotels in April was 78.7 percent, up slightly from 78.6 percent in April 2015. The area's average occupancy rate for all of 2015 was a robust 74.2 percent.
Hotel industry analysts say 70 percent occupancy is considered the point at which hotels can comfortably raise rates.
For perspective, in the sluggish post-recession recovery period in 2010, average occupancy rates at area lodgings hovered below 65 percent.
Average revenue per available room locally in April this year was $94.08, up nearly 6 percent from $89.12 in the year-ago period.
At the start of 2016, officials with the Sacramento Convention & Visitors Bureau pointed to a range of factors that helped boost the fortunes of area motel/hotel operators last year. That included the popularity of the Republic FC soccer team, national media coverage of Sacramento's farm-to-fork initiative, Sacramento hosting a leg of the Amgen Tour bike race and the U.S. Senior Open professional golf tournament in June last year at Del Paso Country Club.
This year, travel experts with AAA Northern California and other organizations said relatively low gas prices and more disposable income among consumers are helping produce the highest volume of travelers in California and nationwide since the recession.
"We are well on our way for 2016 to be a record-breaking year for summertime travel," AAA spokeswoman Cynthia Harris said this week.
CBRE said San Francisco led Northern California in motel/hotel occupancy in April, with an 87 percent rate. Motels and hotels in the Monterey/Carmel resort region led in average revenue per available room, at $246.44.
Through the first four months of this year, Sacramento-area lodgings operators remained on pace to duplicate or surpass their 2015 performance in the three key sectors.
The local occupancy rate in the January-to-April period was 73.2 percent, down just a bit from 73.8 percent in the year-ago period. The average daily room rate was $117.96, up about 7 percent from $110.34. Revenue per available room averaged $86.40 through four months, up 6 percent from $81.48 in the same period of 2015.
Mark Glover: 916-321-1184, @markhglover
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