- San Francisco hotels generated $12B in 2025.
- Industry generated more than $2B in tax revenue.
- Hotel guests spent $8B at hotels and local businesses.
HOTELS GENERATED MORE than $12 billion in economic impact in San Francisco in 2025, according to a study by Oxford Economics. The industry continued its post-pandemic recovery and adjustment to regulatory requirements.
The study, released by the American Hotel & Lodging Association and the California Hotel & Lodging Association, found that each hotel room night generates about $900 in visitor spending across the city, supporting restaurants, retailers, cultural institutions and small businesses.
Hotel guests spent $8 billion at hotels and local businesses. The sector supports nearly 50,000 jobs and generates about $2 billion in tax revenue.
San Francisco hotels generated more than $2 billion in tax revenue in 2025, contributing to funding for public services, infrastructure and emergency response.
“Hotels are the cornerstone of the city’s economy and central to San Francisco’s recovery as a global destination,” said Rosanna Maietta, AHLA president and CEO. “San Francisco is on the rebound as a result of cooperation between City Hall and the business community. The hotel industry looks forward to continuing this progress with the mayor and board of supervisors.”
Mayor Daniel Lurie’s policies on public safety and commercial districts have increased tourism and helped bring back conventions, the report said. The partnership between the city and business strengthened San Francisco’s reputation as a destination for leisure and business travel.
Mayor Lurie said tourism is the city’s largest industry, noting that hotels support nearly 50,000 jobs and generate billions in tax revenue.
“When visitors stay at our hotels, they visit restaurants, small businesses and cultural institutions, supporting the local economy,” he said. “As the city continues its recovery, investment in public safety and business conditions supports further growth in tourism and hospitality.”
A March report by Atlas Hospitality Group found that the California hotel market closed 2025 with $4.1 billion in sales, up 22 percent from 2024. Despite higher volume and a 4.4 percent increase in individual sales, the market remained constrained by interest rates and a wide bid-ask spread.
In May, AHLA joined AAHOA in supporting the Los Angeles City Council’s decision to delay a $30 minimum wage for hotel workers from 2028 to 2030. Negotiations continue on the city’s citywide hotel worker minimum wage ordinance.
