Rebound driven by an improved convention center, a resurgence of international demand and a burgeoning AI sector, according to JLL report
Apr 10, 2025
San Francisco’s hotel market is showing signs of recovery after reaching a low point in 2024, according to a new report from JLL. The rebound is fueled by an upgraded convention center, increased international demand, and high-profile events. Despite a decline in hotel supply since 2019 due to construction challenges, demand is rising, with a growing convention calendar, robust business travel, and returning international tourists. Investment in the market is also expected to increase, as discounted hotel prices attract investors, particularly in the luxury and full-service hotel segments. Political and economic shifts are further contributing to an improved business climate.
Key Takeaways:
- Hotel performance recovery: After reaching a low in 2024, San Francisco’s hotel market is recovering, with RevPAR on the rise and a significant increase in convention center bookings for 2025.
- Strong demand drivers: Returning international demand, high-profile events, and growing business travel are fueling the recovery. The tech and AI sectors are expected to drive further demand.
- Supply constraints: Hotel supply is expected to grow at a slower rate (0.8% annually over the next four years) due to supply chain issues, high construction costs, and limited financing.
- Investment opportunities: With prices 45% below the long-term average, hotel investment is rebounding, offering attractive opportunities for both local and foreign investors.
- Foreign interest: International investors, particularly from Europe, Singapore, South Korea, and the Middle East, are returning to acquire luxury assets in the market.
- Future events: San Francisco will host major events, including the 2025 Microsoft Ignite Convention and the 2026 FIFA World Cup and Super Bowl, further boosting demand.
Get the full story at Hotel Investment Today
