Surge in Hotel Development A Side-Note to San Jose Tech Boom
As demand rises for office space in Silicon Valley, many other industries are brought along for the ride. One such industry, a new report indicates, is the hospitality industry. According to Atlas Hospitality Group, Santa Clara County opened more new hotel rooms in 2019 than any other county.
This achievement is notable, as the State of California set a record for new hotel rooms in 2019, at 11,795. Of that, Santa Clara County created over 16%, with 1,919 rooms spread over 12 properties. As the tech firms grow, the need to accommodate business travelers grows with it.
According to Atlas President Alan Reay, as reported by CoStar News, “It is one of the most desirable markets in California for hotel developers, based almost 100% on the strength of the tech market,” Reay expects the trend to continue, with continued expansion in the Silicon Valley area expected for 2020 and for the foreseeable future.
Silicon Valley, called home by such giants as Google, Apple, and Facebook, as well as numerous other start-ups, med-tech, and the financiers that support them, added some 250,000 jobs over the last 10 years. The planned expansion of Google in the Diridon Station transit hub, which promises even more expansion of the behemoth, includes additional hotel space, as well as retail, office, and multi-family residential units. Google isn’t the only company with a voracious appetite for office space, which means the significant competition for every new square foot that is created.
This growth means there is a need for supporting projects, such as the development of new apartments, schools, offices, industrial and research parks, warehouses, hotels and other facilities necessary to accommodate employees and their families..
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