Hotel development has significantly slowed in both the Bay Area and across California. In the Bay Area, 1,453 hotel rooms were under construction in the first half of 2025, a decrease of 46.7% from 2024. Overall, California saw 12,213 rooms under construction, a 21.4% decline. Southern California also experienced a decline of 21.9%. Santa Clara County faced an 89.5% drop in constructions. Only Napa County reported an increase in hotel room construction, rising by 72.4% with 262 rooms underway.
An estimated 1,453 hotel rooms were under construction in the Bay Area during the first half of 2025, representing a plunge of 46.7% from the previous year.
Lodging development in the Bay Area nosedived worse than the construction decline in California overall, which is down 21.4%.
Santa Clara County experienced a staggering 89.5% drop in hotel room construction, from 684 rooms in 2024 to just 72 in 2025.
Napa County was the only county in the Bay Area with an increase in hotel construction, seeing a 72.4% rise.
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