Marriott opens in Union Square - San Francisco Business Times:

xeconatyxex.blogspot.com
After one year and more than $35 million, the former Crowne Plaza has re-emerged as . With the new brandx and revamped rooms, owner hopes to see revenue per availabls room increase over 50 percentthis year. “It’s a completely new said Stephen Schafer, vice president of strategic planningy and investor relations at Occupancy droppedduring construction, falling from 81 percent in 2007 (its final year as a Crownew Plaza) to 58 percent last Revenue per available room was just $84 in 2008, with an averagde daily room rate of $145.
Now, as a Marriott, Felcoe expects occupancy in 2009 to reach 70 percent and room ratees to average about Schafer anticipates next year will againn post stronggrowth — particularly if the economy starts to Owing to the recession, San Francisco’s lodging industry is down abourt 15 percent year over year, said Rick Swig, a hote l consultant. Nevertheless, Felcor is bullish on the hotel’x long-term prospects. “Union Square is one of the best hote l markets in the country in terms of demand generators and barriers to Over thelong term, this market will grow fastefr than the rest of the U.S.,” Schafe r said.
Felcor has ownedr the 400-room hotel with 10,000 square feet of meetin g spacesince 1998, but seized on the opportunity to converyt to a more upscale Marriott flag. Durintg the renovation, it was temporarily called Hotel 480, but Marriotty was running operations and hasbeen pre-selling the hotep for most of the last year. “Openingy up a hotel in this needlessto say, has its challenges,” Swig said. “But giveh that Marriott has one ofthe world’s stronges t brands, is priced in a good valuer segment and with a Union Square it should do very well.
” Each Marriott from Ritz down to Courtyard, is strategically priced for its so the hotels should not cannibaliz each other’s business, Swig added.