Since the Gold Rush, San Francisco has been defined by cycles of boom and bust in business and real estate—and the hotel market has been no exception. The pandemic dealt a significant blow, knocking San Francisco from its 2019 position as the nation’s leading urban RevPAR market. The city’s heavy reliance on tech, tourism and conventions created a perfect storm when travel demand collapsed.
Key Takeaways:
- San Francisco’s Hotel Market Is Recovering: After a steep pandemic-driven decline, 2025 marked a turning point with RevPAR up 7.6% YOY, outpacing the U.S. average.
- Demand Drivers Are Back: Major events, a stronger convention calendar, and tech resurgence (especially AI) are fueling occupancy and ADR growth.
- Investor Interest Is Rising: Recent hotel transactions show 50–80% discounts from pre-pandemic pricing, creating opportunities for strategic buyers.
- Valuation Reset Signals a New Cycle: Per-room values have structurally adjusted downward, reflecting tempered recovery expectations and higher interest rates.
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