The San Francisco Bay Area was once one of the strongest lodging markets in the United States, bolstered by its robust tech- and venture-capital-driven economy, its status as a top-tier international travel destination, and its high barriers to entry. However, the pandemic transformed San Francisco more than any other major U.S. market. Asian-based tourist travel diminished greatly, and office vacancies increased as many companies embraced hybrid work models. The retail industry has been affected by these changes; layoffs and hiring freezes in 2023 contributed to the delayed economic recovery. A healthy convention schedule supported an occupancy increase in 2023, but bookings declined for 2024. In 2023, occupancy hovered in the mid-60s, while ADR surpassed $220 (roughly $30 below the 2019 level). Occupancy then remained stable in 2024, with a modest decrease in ADR. In 2025, RevPAR reached the highest level since the pandemic, bolstered by strong a convention calendar. The region hosted Super Bowl LX in February 2026 and was one of many destinations to host FIFA World Cup matches this summer, supporting strong performance trends in 2026. San Francisco’s diverse economy, a healthy convention calendar, the ongoing return-to-office policies, and growing investment in AI technology should continue to contribute positively to market trends.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

San Francisco - San Mateo RevPAR Change

San Francisco - San Mateo RevPAR

For more information, please contact:

John Berean Managing Director, Hawaii and Northern California Region Leader Valuation, Market & Feasibility Consulting [email protected] +1 281 381-3456 (w)