Saturday, August 27, 2011

Booming Market for San Francisco Hotels

One of the epicenters of money flow as a result of the current round of Federal Reserve money printing has been Silicon Valley. SV is having an impact just up the road as San Francisco experiences a boom in hotel sales.

Investors paid a record $780 million for hotels in the 12 months through June, a 75 percent increase from the previous year, according to broker Atlas Hospitality Group, reports the San Francisco Chronicle.
"San Francisco has never been this hot, ever," said Alan Reay, president of Atlas Hospitality. "You have a low cost of capital, pent-up demand and properties that wouldn't normally come to market."
The city's revenue per available room, a measure of rates and occupancy that is the most important metric for hotel investors, is projected to rise 15 percent this year, more than double the U.S. average, according to San Francisco's PKF.

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