"Construction of hotels has plunged in the Bay Area, a nosedive that was unleashed by stubborn problems for hotel financing and elevated construction costs, a new report from Atlas Hospitality Group shows. An estimated 15 hotels with an aggregate 1,610 rooms were under construction in the Bay Area during 2025, representing a sharp decline from the equivalent totals in 2024, according to the report from Atlas Hospitality. This news organization derived the totals from figures that Atlas Hospitality compiled for its report."
""Financing friction and elevated construction costs are still limiting new starts," Alan Reay, president of Atlas Hospitality Group, wrote in the company's report. The number of hotels under construction in the Bay Area fell 28.6%, while the number of hotel rooms under construction in the region dropped 34.3%, an analysis of the Atlas Hospitality figures shows. An estimated 21 hotels with an aggregate total of 2,452 rooms were under construction in the nine-county region in 2024."
An estimated 15 hotels with 1,610 rooms were under construction in the Bay Area during 2025, down from 21 hotels with 2,452 rooms in 2024. Hotel starts in the Bay Area fell 28.6% and rooms under construction declined 34.3%. Financing friction and elevated construction costs limited new starts. The decline was more pronounced in the Bay Area than in Southern California, where 59 hotels with 6,399 rooms were under construction in 2025, down 16.9% and 33.8% respectively. California-wide openings rose to 50 hotels with 7,100 rooms, with hotel deliveries up 42.9% and rooms opened up 86.9%.
Read at The Mercury News
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