LaFortune: Better business through community collaboration

Running a business is tough. Running a hospitality business in the Bay Area post-COVID has been especially tough.

This industry has been seriously affected in the Bay Area and our three major cities have yet to recover to pre-pandemic performance numbers. San Jose’s hospitality industry has experienced some of the country’s most radical market shifts. And, although we still have miles to go, the good news is that in spite of these shifts, San Jose has the Bay Area’s biggest bounce back.

Pre-COVID San Jose had some of the highest hotel rates and occupancies in the country. This was due to healthy transient business travel and big citywide conventions and meetings. As you are likely aware, we have the largest concentration of tech companies in the world. There are more than 6,600 tech companies in San Jose or within 18 miles of downtown. When the world learned how to meet easily through technology and from the comfort of their own homes, businesses saw they could cut travel budgets without compromising efficacy.

With that past gone, and the future still unwritten, there has been new opportunity. San Jose’s cleaner and safer image, coupled with aggressive work by our destination sales and marketing folks, downtown leaders, elected officials, sports teams and special events has helped San Jose lead the Bay Area in hospitality industry recovery. Yes, San Jose’s hospitality industry is rebounding better than any of our big city neighbors.

In 2023, San Jose’s visitor spend grew 7.5% year-over-year to reach $2.5 billion. That means nearly $7 million was spent every day by visitors in San Jose. By category, lodging led visitor spending growth, increasing 10%, and recreation spending by visitors increased 8%. Food and beverage spending also recovered to 8%.

December 2024 hotel numbers show incredible growth year-over-year. Citywide, weekends saw a 24% growth in revenue generated per available room, with a 17% increase in hotel occupancy. Downtown hotels posted a 48% increase in revenue per available room and 42% increase in occupancy for weekends. Meanwhile, both other Bay Area cities saw all performance numbers decrease for the same time period.

If you are a San Jose hospitality business owner looking to tap into and leverage this momentum, there are two new ways.

In an effort to involve more local businesses, and expand the hospitality community’s collaboration, Team San Jose/Visit San Jose is launching San Jose’s first hospitality industry website. Named, “Together for San Jose,” the website, hosted as part of SanJose.org, will feature information on how to partner with all lines of business in the Convention Center and the downtown theaters managed by Team San Jose. It will include procurement opportunities, research information on industry insights and trends, industry links to Visit California and links to U.S. Travel for additional insights, legislation and policy initiatives.

It will also feature marketing, communications and sales information with links to how to update your web listings, submit your business or event, download free photos and videos, be featured in current media campaigns including newsletters, social media and campaign creative features.

All of this is to provide even greater support for this important industry and to drive visitation and revenue to local businesses.

The second way is to come and meet me at the Bi-Annual Summit for Hospitality, or BASH. All restaurants, retail shops, cultural attractions, entertainment venues, tour operators and hospitality organizations are welcome to come meet industry peers and make connections.

The BASH with the website launch is Thursday, Feb. 6 from 4-6 p.m. in the grand ballroom at the San Jose McEnery Convention Center. Please register in advance and join us to learn more about our community, San Jose’s $3.5 billion visitor economy and ways to keep San Jose moving forward.

I hope to meet you there.

San José Spotlight columnist John LaFortune is the president and CEO of Team San Jose, the nonprofit parent company of Visit San Jose, the city’s official destination marketing organization. Team San Jose also manages the San Jose McEnery Convention Center and entertainment venues including the California Theatre, the Center for Performing Arts, Montgomery Theater and San Jose Civic. Contact John at [email protected].