Silicon Valley historically experienced strong lodging performance driven by high-rated corporate demand during the week. Thus, the rise of remote work policies has had an impact on recovery. However, the presence of Big Tech, surging interest in AI technology, and expansion of the life-sciences sector are anticipated to drive growth in this market over the long term.
Since the onset of the COVID-19 pandemic, the San Francisco Bay Area has been one of the most severely affected markets in the nation. Silicon Valley, despite its status as the technology capital of the world, experienced significant declines in lodging performance because of its historical reliance on higher-rated business travel. This article discusses the changing business dynamics in Silicon Valley and the impact of the pandemic on the local hotel market.