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San Francisco Hotels Surge in 2025 with 50% Convention Boost

RevPAR bottomed in 2024, now 2025 convention bookings are up 50 percent

San Francisco convention center hosting Microsoft Ignite 2025

San Francisco’s hotel market is rebounding after bottoming out in 2024, driven by renewed international demand and major upcoming events, according to a new JLL report.

Photo credit: iStock

San Francisco Hotel Market Recovery 2025: JLL Report Highlights

SAN FRANCISCO’S HOTEL market is showing signs of recovery after hitting bottom in 2024, according to a new JLL report. The rebound is driven by an upgraded convention center, returning international demand and major upcoming events.

RevPAR also reached its low in 2024 but is now recovering, with 2025 convention center room night bookings up 50 percent year over year, the report found.


Hotel performance continues to strengthen, supported by a more active convention calendar, increased international travel and high-profile events. Return-to-office mandates, resilient venture capital activity and a growing AI sector are expected to drive demand from conferences, industry gatherings and business travel, according to JLL, creating an opportunity to capitalize on limited new supply.

Hotel supply has trended downward since 2019, constrained by supply chain issues, high construction cost and tight development financing. Supply is projected to grow just 0.8 percent annually over the next four years—77 basis points below the long-term average since 2000.

Meanwhile, hotel investment is poised for a rebound from historic lows. With a pricing reset and possible political leadership changes, private equity is expected to return, fueling renewed interest in full-service assets, the report said. Prices remain 45 percent below the long-term average, offering investors a rare opportunity to acquire quality hotels at a discount.

San Francisco also offers one of the deepest discounts to replacement cost nationwide, with full-service hotels trading at a 78 percent discount and select-service at 31 percent, according to JLL. This makes the market attractive across both segments.

Foreign investors are reentering the market, drawn by fresh opportunities. European, Singaporean, South Korean, and Middle Eastern sovereign wealth funds are positioning to acquire irreplaceable luxury assets. These global players, long active in shaping the city’s hotel landscape, are expected to make significant moves as market conditions improve.

Political shifts are contributing to a more business-friendly climate, while economic indicators point to continued momentum. In 2024, San Francisco captured nearly 20 percent of all U.S. venture capital funding and is slated to host major events, including the 2025 Microsoft Ignite Convention, 2026 FIFA World Cup matches, and the 2026 Super Bowl.

Separately, a recent report from Atlas Hospitality Group found that California hotel development fell to a decade low in 2024, with only 35 new hotels and 3,798 rooms added—a 34 percent drop in openings and nearly a 40 percent decline in new rooms compared to 2023.

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