Hotel development in both the Bay Area and California has slowed notably, as identified in a report by Atlas Hospitality Group. In the first half of 2025, 1,453 hotel rooms were under construction in the Bay Area, reflecting a 46.7% decrease from the previous year. Statewide, California saw a 21.4% reduction, with 12,213 hotel rooms under construction. Southern California's construction figures also dropped by 21.9%, with 6,995 rooms being built. Notably, Santa Clara County experienced an 89.5% decline, while Napa County saw a 72.4% increase.
Hotel development in the Bay Area saw a drastic decrease, with only 1,453 hotel rooms under construction in the first half of 2025, marking a 46.7% drop from 2024.
California as a whole experienced a 21.4% decline in hotel room construction in the first half of 2025, with 12,213 rooms being built.
Southern California also faced a downturn, with 6,995 hotel rooms under construction, a decrease of 21.9% from the previous year.
Santa Clara County reported an 89.5% drop in hotel construction, with only 72 rooms under construction compared to 684 the year before.
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