According to an Oxford Economics study released by the American Hotel & Lodging Association (AHLA) and the California Hotel & Lodging Association (CHLA), hotels generated more than $12 billion in economic impact in San Francisco in 2025, supporting jobs, tax revenue, and wider tourism spending.
At a Glance
- Hotels generated $12+ billion in economic impact in 2025
- Around 50,000 jobs supported (direct and indirect)
- Hotels contributed $2 billion in tax revenue
- Guests spent roughly $8 billion in hotels and local businesses
- Each hotel room night drives about $900 in citywide spending
Hotels at the Center of San Francisco’s Recovery
Hotels in San Francisco generated more than $12 billion in economic impact in 2025, according to a new Oxford Economics study released by the American Hotel & Lodging Association and the California Hotel & Lodging Association.
The report positions hotels as a central force behind the city’s tourism rebound, supporting restaurants, retailers, cultural venues, and small businesses as visitor demand continues to recover after the pandemic-era downturn.
Jobs, Spending, and Tax Contributions
The study outlines the scale of hotel-driven economic activity in San Francisco:
- Nearly 50,000 total jobs supported
- ~16,000 direct hotel jobs
- ~34,000 indirect and ancillary jobs
- Around $2 billion in total tax revenue generated
- Approximately $8 billion in visitor spending at hotels and local businesses
- About 70 cents of every tourism dollar is spent outside hotels, in the wider economy
The report also estimates that each hotel room night contributes roughly $900 in citywide spending per visitor, reinforcing the sector’s multiplier effect across the local economy.
Industry Leaders Highlight Tourism’s Wider Impact
“Hotels are the cornerstone of the city’s economy, and pivotal to accelerating San Francisco’s comeback as a top global destination,” said Rosanna Maietta, President & CEO of AHLA.
Lynn S. Mohrfeld, President & CEO of CHLA, emphasized the wider visitor spending impact, noting that hotel guests significantly support restaurants, retail, and entertainment sectors across the city.
Mayor Daniel Lurie also highlighted tourism as San Francisco’s leading industry, linking the sector’s recovery to broader efforts to improve public safety and revitalize commercial districts.
Recovery, Convention Growth, and International Travel Gap
The report notes that San Francisco’s hotel sector saw a strong rebound in 2025, driven by:
- A stronger convention and events calendar
- Return of large-scale business travel
- Gradual recovery in leisure tourism
However, the sector still faces structural gaps:
- Average daily rates (ADR) remain at ~92% of 2019 levels, projected to reach 98% by 2026
- International visitation remains below pre-pandemic levels
- International travelers make up only ~10% of volume but contribute over half of visitor spending (~$5 billion in 2024)
In 2024, the city recorded approximately 2.34 million international visitors, down from 2.95 million in 2019.
Why It Matters
The findings reinforce hotels as more than accommodation providers—they function as economic engines linking tourism to broader urban recovery.
For San Francisco, the data suggests that sustained recovery will depend heavily on:
- Continued convention growth
- International travel recovery
- Stable operating conditions for hospitality businesses
As the city rebuilds its global tourism profile, hotel performance remains closely tied to the health of restaurants, small businesses, and cultural institutions across the destination.
About the Organisations
American Hotel & Lodging Association
The largest hotel association in the United States, representing more than 30,000 members across all segments of the lodging industry.
California Hotel & Lodging Association
A leading statewide lodging association representing over 6,000 hotels, motels, and inns across California.
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Editorial disclosure: This article is an independently written editorial analysis based on industry reporting from HNR Hotel News. The content has been rewritten and contextualised for editorial clarity and relevance.
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