San Francisco Hospitality Market Report

Bay Area travel recovery gaining momentum. Business and leisure travel to the region continues to recover. San Francisco led all major U.S. markets in RevPAR growth in 2025 at 11.8 percent, and momentum is expected to carry into this year. Major events, including Super Bowl LX and FIFA World Cup matches at Levi’s Stadium in nearby Santa Clara, should support incremental demand across the metro. Ongoing city efforts to improve downtown safety and cleanliness, alongside a strengthening office environment tied to AI-industry-related leasing, should also benefit hotel performance. Still, occupancy remains roughly 10 percent below 2019 levels — the widest gap among major U.S. markets — underscoring both the market’s slower recovery and its remaining upside. International visitation, a historic pillar in the region’s tourism economy, remains a key laggard despite the World Cup. While international travelers spend roughly 50 percent more than domestic visitors, they represent only about a quarter of total arrivals, down from roughly one-third pre-pandemic, and recent federal policy headwinds will constrain further recovery.