Sheraton Hotel Redding At Sundial Bridge - Redding Record ...

Seasonality
It is important to note some limitations of the STR data. Hotels are occasionally
added to or removed from the sample, and not every property reports data in a
consistent and timely manner; these factors can influence the overall quality of the
information by skewing the results. These inconsistencies may also cause the STR
data to differ from the results of our competitive survey. Nonetheless, STR data
provide the best indication of aggregate growth or decline in existing supply and
demand; thus, these trends have been considered in our analysis. Opening dates,
as available, are presented for each reporting hotel in the previous table.
As shown by the STR trend report, between 1999 and 2007, the market typically
ran occupancies in the mid- to high-60% range, peaking in 2002 at roundly 71.5%.
During this period, annual average rate growth fluctuated from a low of 2.3% to a
high of 6.0%. In 2008, the market again experienced strong demand and the
highest rate growth (7.1%) was recorded for the historical period. As with many
markets in this current cycle, demand began to contract in the fall of 2008. With
the decrease in demand levels and resultant decline in occupancy, operators
responded by dropping rates. In 2009, monthly average rates show discounts of
roundly 3% in the winter to 10% in August, which resulted in an overall rate
decline of 5.6%. Demand levels began rebounding in September 2009 and
remained strong in 2010. The additional inventory from the new Fairfield Inn,
which opened in May 2010, was quickly absorbed by the strong demand levels.
Average rate experienced rate growth during the summer months, albeit at
moderate levels. Operators expect to be able to continue to raise rates in 2011.
Monthly occupancy and average rate trends are presented in the following tables.
February-2011 Supply and Demand Analysis
Sheraton Hotel Redding At Sundial Bridge – Redding, California 48