It’s that time of year again – two NFL powerhouses will battle for the Super Bowl LX title, with this year’s showdown happening 8 February at Levi’s Stadium in the San Francisco Bay Area.
San Francisco previously hosted the big game in 2016, with the city seeing a major lift in hotel performance. In February, San Francisco hotels reported a 30% jump in revenue per available room (RevPAR) (to US$198), while occupancy reached 81% and average daily rate (ADR) climbed to US$244.36.
The three-day Super Bowl weekend saw even greater performance levels: occupancy (82%), ADR (US$453), and RevPAR ($370). Although Levi’s Stadium sits about 40 miles from San Francisco’s downtown, nearby cities such as San Jose felt the heat of the Super Bowl even more. The city’s hotels saw rates skyrocket, surging 139% the day before kickoff and RevPAR soaring 162%, proving that the ripple effect of the big game extends well beyond just San Francisco.
Fast forward to 2026, San Francisco hotels are forecasted to deliver another set of strong results in February, with room rates projected to rise 37% year over year, fueling a 47% boost in RevPAR. This translates to an actual ADR of US$293.69 and RevPAR of US$192.81 for the month. Compared to 2016, the city is looking at a 19% dip in occupancy and a 3% decline in RevPAR, while ADR would increase 20%.
The forecast is conservative compared to 2016 highs but highlights the market’s struggles post-pandemic. After a challenging few years, San Francisco has had a strong rebound, and October year to date it’s leading the U.S. Top 25 Markets with impressive gains – occupancy climbed by an average of 4.9%, ADR surged 5.9%, and RevPAR soared 11.3%. With the Super Bowl on the horizon, the city is perfectly positioned to kick off the new year with momentum and set the stage for another standout year.
Supply plays a key role in occupancy projections as well. For context, last year’s host city, New Orleans, saw a staggering 51% RevPAR increase year over year and a nearly 96% actualized occupancy on game night, resulting in an ADR of US$810. San Francisco faces a unique challenge, as its supply is roughly 20% larger than New Orleans, making demand harder to concentrate.
Bottom line – Super Bowl LX will still pack a punch for San Francisco and the surrounding area hotels, driven by strong rates and a national spotlight, even if occupancy does not reach past highs.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
