Want to Build a Hotel in S.F? Good luck.
S.F. hoteliers are enjoying record occupancy and a healthy demand for beds. But it's not all good news, as the costs of developing a new hotel have become nearly insurmountable. Building hotels is much more expensive than building office and even residential, hotel consultant Rick Swig told the San Francisco Business Times. That’s due to a variety of issues, including the need for individual bathrooms in each hotel room. Buying into the business isn't getting any easier, as Bisnow recently reported on the record price paid for the Mandarin Oriental. [SFBT]