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<br />380,000 square feet of additional space. <br /> <br />Lodging Market Overview <br /> <br />Pleasanton has a total of 1,824 hotel rooms in 16 different establishments, with the most <br />recent additions being the Marriott Residence Inn in 1999 and the Rose Hotel in 2001. The <br />majority of Pleasanton hotels accommodate business travelers, with six hotels serving the <br />business community and an additional four establishments offering extended-stay corporate <br />rentals. These include the Crowne Plaza, Marriott Courtyard, and Summerfield Suites. The <br />City also has two budget motels (including Motel 6), one bed and breakfast (Evergreen Bed <br />& Breakfast) and one luxury hotel (the Rose Hotel). <br /> <br />Until recently. the major source of lodging revenue has been business travelers. including <br />participants in corporate training occurring in Hacienda (particularly associated with <br />PeopleSoft). Although weekend and wedding business has increased over the past five <br />years. the overall economic downturn and the acquisition of PeopleSoft has greatly reduced <br />this key corporate business <br />hotel segment. For <br />example, average daily <br />room rates (ADRs) peaked <br />in 2001, at 110 per room <br />night, but dropped between <br />2001 and 2004 by 37 <br />percent. Occupancy rates <br />declined rapidly between <br />2001 and 2002 (the year of <br />economic decline), from 72 <br />percent to 60 percent, and <br />held relatively steady at this <br />lower level until 2005. Both <br />ADR and Occupancy rates <br />have recovered in 2005 to <br />an ADR of $85 and an <br />average occupancy of 67 <br />percent (see Table 19). <br /> <br />Pleasanton Hotel Average Daily Rate and Occnpancy Trends <br /> <br />SI20 <br /> <br />80% <br /> <br />$100 <br /> <br /> <br />10"10 <br /> <br />70'% <br /> <br />60% <br /> <br />$SO <br /> <br />~ <br />~ "0 <br /> <br />50% B <br />~ <br />- 40"/0 J <br /> <br />30% 0 <br /> <br />$40 <br /> <br />20"10 <br /> <br />$20 <br /> <br />$0 <br /> <br />0% <br /> <br />1999 <br /> <br />2~--2Q01_.__---.2~_, 2003 <br />_Occupancy -~~I <br /> <br />2005 <br /> <br />2004 <br /> <br />Transient Occupancy Tax (TOT) is a tax charged by hotels, motels and other temporary <br />lodging facilities for the occupancy of a guest room, and represents a measure of hotel <br />market conditions linked to the City's fiscal vitality. In Pleasanton, the current TOT rate is <br />eight percent of the room rate (TOT is not applied to charges for meals, telephone, or other <br />hotel services). <br /> <br />Pleasanton Economic Development Background Report <br />RNAL - January 2006 <br /> <br />38 <br />