silicon valley
COVID-19’s Impact on the Silicon Valley Lodging Market
John Berean | February 23, 2022
By John Berean, Noella Moon One of the main economic engines of the San Francisco Bay Area, Silicon Valley experienced tremendous growth during the last business cycle. Major companies such as Google, Apple, and Meta (formerly Facebook) have expanded their presence in recent years, which has historically translated to strong lodging performance. However, with the onset of the pandemic and a market-wide shift in policy toward remote working in 2020, hotels have been severely affected, particularly in terms of average rate. Moreover, the influx of new supply over the last several years has been significant, which has substantially heig...
Silicon Valley Supply Growth Rates Increasing in Step with Demand Growth
Lana Yoshi | March 7, 2019
By Lana Yoshii There are 80 proposed hotels and 5 expansions totaling roughly 12,000 rooms planned for development in the greater Silicon Valley area. Worse case, with 31,000 hotel rooms today, there could conceivably be a 39% increase in supply. Is it time to hit the panic button? Since 2000, the two largest surges of new supply occurred in 2003 (4.6% growth) and 2015 (4.8% growth). However, from 2004 to 2014, Silicon Valley's new hotel rooms supply was very mild – maxing out at a 2.3% annual growth in 2014, and averaging at a compound annual growth rate of 0.5%. In recent history, annual new supply exceeded 1,000 new rooms in 20...
HVS Market Pulse: Silicon Valley
John Berean | September 14, 2017
By John Berean Home to numerous high-tech corporations and startup companies, Silicon Valley encompasses the southern portion of the San Francisco Bay Area. As defined by the 2017 Silicon Valley Index, this region covers the cities in San Mateo County and Santa Clara County. The index also incorporates portions of Alameda County, including the cities of Fremont, Newark, and Union City, as well as Scotts Valley in Santa Cruz County. For purposes of this article, the greater Silicon Valley area will follow the aforementioned definition, with the exception of Scotts Valley. This article will primarily focus on new hotel development, and ho...
