49ers stadium may drive hotel room crunch in Santa Clara

111th Aerial Photography Squadro,Julie & Pat Belanger

The 49ers new stadium in Santa Clara is a few weeks ahead of schedule, but hotels in the area are already booming.

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Lauren Hepler: Economic Development Reporter- Silicon Valley Business Journal; Email | Twitter | LinkedIn | Google+

If a post-recession trend of packed hotels continues, fans flocking to the San Francisco 49ers' new Levi's Stadium in Santa Clara may have a difficult time finding a room in the city.
The Santa Clara Convention and Visitors Bureau issued hotel occupancy numbers for July that show the eight full-service hotels near the stadium averaged 85 percent occupancy with nightly rates around $157. That's a 5 percent year-over-year increase in occupancy and a $14 uptick in average nightly rates since July 2012.
"We had a strong spring and are pleased to see a stronger summer," said Steve Van Dorn, Santa Clara Chamber of Commerce and Convention-Visitors Bureau President and CEO, in a statement. "Meetings and business travel rebounded some time ago, and we are cautiously optimistically this will continue."
Last week we gave you an exclusive update on construction progress at the San Francisco 49ers' new $1.3 billion Levi's Stadium in Santa Clara, which local officials say should be a boon for the city when it comes to attracting new visitors.
The latest occupancy numbers for Santa Clara raise the question of whether an influx of fans for the 2014 season — not to mention the 2016 Super Bowl — will generate spillover business for hotels in neighboring cities like San Jose, or whether fans will opt for San Francisco.
The hotel market in Santa Clara began simmering last week when Hyatt Corp. sold the landmark Hyatt Regency Santa Clara to Orland-based Inland American Lodging Group Inc. for an estimated $90 million-$100 million.
Nearby, the Hilton Santa Clara is currently exploring a 420-room addition with a rooftop bar overlooking the stadium. One nagging uncertainty, however, is an ongoing redevelopment scuffle between the city and the state over the land the hotel sits on.