Santa Clara County leads state in hotel openings last year

Silicon Valley business travelers are target market for 1,155 new rooms

Atlas Hospitality's Alan Reay with 521 Alder Dr
Atlas Hospitality's Alan Reay with 521 Alder Dr (Element, Getty, LinkedIn)

Santa Clara County bucked the hotel development slowdown in the Bay Area with the opening of seven hotels in 2022, according to a survey by consulting firm Atlas Hospitality.

Those hotels brought 1,155 new rooms to market, the most of any county in California. No other Bay Area county saw more than four hotel openings last year.

The 1,155 new rooms were on par with 1,150 rooms that opened in 2021. The 194-room Element Hotel in Milpitas was the largest hotel in Santa Clara County in 2022. The county’s high number of hotel openings stem from the fact that the properties were planned at a time when business travel was popular, especially in Silicon Valley.

“Santa Clara County openings were all business-related hotels that were planned and in construction prior to the downturn in business travel,” Alan Reay, president of Atlas Hospitality, told TRD. “These hotels were all planned during the ‘boom’ times for business in Santa Clara County, predominantly driven by tech.”

Elsewhere in the Bay Area, San Francisco County had four new hotels open in 2022 with 555 rooms. The 299-room Luma Hotel San Francisco was the largest. San Mateo and Alameda counties saw three new hotels apiece, while Napa and Sonoma counties had one new hotel each.

2022 saw a decline by 42 percent compared to hotel openings in 2021, but even with the decline 2022 saw the fifth highest total in number of rooms opened since 2010.

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Construction delays made 2021 an outlier, Reay said.

“Hotel drop off is due in large part to the fact that a lot of developers delayed finishing construction and opening in 2020 due to COVID-19, and so it pushed a lot of openings into 2021,” he explained.

In total the Bay Area had 34 hotels open in 2022 with 4,441 rooms. In total, California had 114 hotels open with 15,352 rooms. The 305-room Conrad Hotel Los Angeles was the largest in the state last year. San Bernardino County had the highest number of new hotels opened with eight, followed by Santa Clara County and Los Angeles County with
seven hotels each.

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