"Of the 172 hotel markets in the U.S. that CoStar tracks, San Francisco is the least recovered post-pandemic, except for the Hawaiian island of Maui, Stathokostopoulos said. Tourism has been severely hurt on the island, the site of deadly wildfires that largely destroyed the town of Lahaina in August 2023. San Francisco did not experience any kind of natural disaster, but it still suffers from "reputational challenges" around crime and cleanliness, Stathokostopoulos said, despite recovery of the tourism business gaining momentum."
"A look at CoStar statistics shows the San Francisco hospitality industry's bounce back this year, but also its distance from the level it had achieved before the COVID-19 pandemic. Average occupancy was up 4.9% from January through August 2025, at 69.1% compared to the same period last year. In the same period in 2019, though, occupancy was 83%. Room rates increased by 3.75% to an average of $205 a night so far in 2025."
San Francisco hotels experienced gains in occupancy, rates and revenue in the first eight months of 2025, with average occupancy at 69.1% and average room rate $205 per night. Occupancy rose 4.9% from the same period in 2024, while room rates increased 3.75%. Occupancy in the same span of 2019 was 83%, indicating a substantial gap to pre-pandemic levels. Major events like Dreamforce, which brought $150 million to the local economy, plus the upcoming Super Bowl and 2026 FIFA World Cup games, are expected to boost visitor demand. CoStar notes ongoing reputational challenges tied to crime and cleanliness, and San Francisco remains among the least recovered U.S. hotel markets.
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