By Brittney Sherman
In 2019, San Francisco was ranked one of the top two hotel markets nationwide, falling just behind New York City. However, when the pandemic hit it knocked San Francisco to rock bottom. Group travel and international travel, especially from China, generated over 60% of San Francisco hotel stays, two travel sections that were decimated in 2020.
There are approximately 230 hotels and upwards of 34,000 hotel rooms in San Francisco. In 2019, the average hotel occupancy was (82.9) percent and the average daily rate (ADR) for a room was $275.79, the highest ADR ever recorded in the City’s history. Of the recorded 26.2 million visitors to the City in 2019, roughly (40) precent stayed at least one night. Overnight visitors were responsible for producing (87) percent of the total direct visitor spending for the year and hotel transient occupancy tax (TOT) represented (50) percent of the City’s General Fund.
As people adjust to the new normal, San Francisco hotels continue to experience a slow burn of recovery, projecting to end the 2022 year with a (64) percent occupancy rate. Although industry leaders do not expect full hotel recovery of pre-pandemic occupancy and ADR until early 2025, Visit San Franciso will launch a campaign in 2023 to change the narrative on how people view the City to foster a quicker return of international and group travel to San Francisco.