News Summary
San Francisco’s hotel industry is experiencing substantial growth, highlighted by a 10.2% increase in occupancy, 68.1% rise in average daily rates, and an 85.3% boost in revenue per available room. This impressive recovery is driven mainly by the Dreamforce event. In contrast, the nationwide hotel market shows mixed trends, with an overall occupancy decline while luxury hotels thrive. Despite San Francisco lagging behind pre-pandemic levels, ongoing events and limited new hotel supply suggest a bright future for the city’s hospitality sector.
San Francisco
The hotel market in San Francisco is experiencing a remarkable recovery, distinguished by significant rises in occupancy, average daily rate (ADR), and revenue per available room (RevPAR). During the week of October 12-18, San Francisco reported an occupancy increase of 10.2% to reach 83.4%, along with a staggering ADR surge of 68.1% to $368.79 and an impressive RevPAR boost of 85.3% to $307.40. This resurgence is largely attributed to the Dreamforce 2025 event, which has significantly impacted the local economy.
In contrast, the nationwide hotel industry is facing more complicated trends. The overall occupancy rate dropped to 68.5%, down 2.4% year-over-year, while the national ADR increased slightly by 1.7% to $173.14. The RevPAR fell by 0.7% to $118.65, indicating a mixed performance among the country’s top markets. Notably, without the exceptional growth observed in San Francisco, overall RevPAR for the U.S. would have taken a steeper decline of 1.9% for the same week.
San Francisco’s remarkable hotel performance in the latter half of 2025 follows a trend of improvement in occupancy rates. In the first eight months of the year, San Francisco saw a 4.9% rise in occupancy, reaching 69.1%, along with a 3.75% increase in room rates, averaging $205 per night. The city’s RevPAR saw a noteworthy growth of 8.9% to $153 per night, although this still leaves it trailing 25% behind pre-pandemic figures from 2019.
In addition to the Dreamforce event, the city has benefitted from a lack of new hotel supply, which has helped existing hotel owners maintain higher occupancy rates. Enhanced marketing efforts and an array of forthcoming conventions and events are anticipated to further bolster demand for San Francisco hotels.
Conversely, other cities are experiencing varying outcomes. For instance, Tampa has faced the most significant occupancy drop, which decreased by 23.2% to 63.5%, largely influenced by Hurricane Milton’s impact on local demand. Miami’s performances were also impacted by the absence of major events, reporting a sharp decline in ADR (down 27.2% to $178.62) and a RevPAR decrease of 32.7% to $120.96.
Nationwide, luxury hotels reported a 10.1% increase in RevPAR due to a robust ADR growth of 10.3%, signifying that high-end accommodations continue to find favor amid the fluctuating market. Weekend declines were observed across the board, however, with nationwide RevPAR down 4.2% and a more pronounced drop of 6.6% seen within the top 25 markets.
Looking ahead, the projected growth for San Francisco’s hotel market remains optimistic. While the current trajectory showcases substantial recovery, experts indicate that full recovery to pre-pandemic levels may still take several years. The combination of increased demand fueled by ongoing events and the lack of competitive supply suggests that the future for San Francisco hotels may hold further potential for growth.
In summary, San Francisco stands out as a beacon of recovery in the hotel sector, significantly outpacing other major U.S. markets during a week characterized by mixed national trends. As the local economy continues to respond positively to large-scale events like Dreamforce 2025, the city’s hospitality sector looks set to continue on its upward trajectory.
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Additional Resources
- SFGate: San Francisco Hotel Market Recovery
- Wikipedia: San Francisco
- Hotel Dive: San Francisco Hotel Recovery Investment
- Google Search: San Francisco hotel market
- Hotel News Resource: Hotel Market Insights
- Google Scholar: San Francisco hotel performance
- Hotel Investment Today: SF RevPAR Analysis
- Encyclopedia Britannica: Hotel
- Skift: San Francisco’s Hotels Finally Rebound
- Google News: San Francisco hotels
Author: STAFF HERE PETERSBURG WRITER
The ST PETERSBURG STAFF WRITER represents the experienced team at HEREStPetersburg.com, your go-to source for actionable local news and information in St Petersburg, Pinellas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Grand Prix of St. Petersburg, Localtopia, and SHINE Mural Festival. Our coverage extends to key organizations like the St. Petersburg Area Chamber of Commerce and St. Pete Downtown Partnership, plus leading businesses in finance, manufacturing, and healthcare that power the local economy such as Raymond James Financial, Jabil, and Bayfront Health St. Petersburg. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
