The attendees at BABTA’s October meeting heard a mixed report on the status of hotel room costs and the meetings outlook around the Bay Area for the next two years from John Reyes, executive vice president and chief customer officer of the San Francisco Travel Association.

Reyes provided an in-depth analysis which projects that, even with no new hotel room inventory coming into the San Francisco market, travel demand still will continue to increase in 2012 and 2013. Occupancy is expected to rise 1.7 percent to 59.5 percent; ADR will increase 6.8 percent to $109.16, and RevPAR is projected to be up 8.6 percent to $64.93.

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The good news, according to Reyes, is that the convention business in San Francisco will remain strong. It is projected to have record-breaking, city-wide attendance, with very few cancellations and none pending beyond 2013. However, everyone in the industry remains cautious as the “two-to-three-year economy forecast is ‘partly cloudy but optimistic.’”  

Joeann LaMadrid is Bay Area BTA vice president of public affairs and newsletter.