USA | A new report has found that hotels generate USD 12 billion for the local economy in San Francisco, elevating the city by the bay.
Hotels generated more than USD 12 billion in economic impact in San Francisco in 2025, propelling restaurants, retailers, cultural institutions, and small businesses, according to an Oxford Economics study released today by the American Hotel & Lodging Association and the California Hotel & Lodging Association.
The new economic data illustrates the comprehensive impact hotels had for San Francisco last year as they continue to recover from the global pandemic and burdensome mandates. Each hotel room night drives about USD 900 in citywide spending per visitor, according to the report, which also found hotels support nearly 50,000 jobs, pay USD 2 billion in total taxes, and hotel guests spent USD 8 billion at hotels and local businesses.
"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.
"San Francisco is on the rebound as a result of a strong partnership between City Hall and the business community. The hotel industry looks forward to furthering this progress with the mayor and Board of Supervisors because when hotels thrive, workers, residents, and small businesses across the community do too in a true win-win."
"San Francisco is the perfect example of the economic benefit that hotels bring to every California community," said Lynn S. Mohrfeld, President & CEO of CHLA.
"The guests that stay in San Francisco hotels spend 70 cents of every dollar in the community - at restaurants, shopping at small businesses and for entertainment. Hotels are the foundation of the entire hospitality experience in San Francisco."
San Francisco's improving business climate, led by Mayor Daniel Lurie's policies to improve public safety and revitalise critical commercial districts, has increased tourism and bolstered the return of conventions. The partnership between the city and business has reframed San Francisco's reputation globally as a premier destination for leisure and business travel.
"Tourism is our city's number one industry, and hotels are among our greatest economic engines, supporting nearly 50,000 jobs, generating billions in tax revenue, and welcoming visitors from around the world," said Mayor Daniel Lurie.
"When visitors stay at our hotels, they visit our restaurants, small businesses, and cultural institutions, supporting our recovery and experiencing what makes our city so special. As our city continues its comeback, our strong hospitality sector is proof that when we invest in public safety and create the conditions for business to thrive, everyone benefits."
For years, the San Francisco hotel industry was in turmoil due to a collapse in travel, public safety concerns, and decreased investment. Lurie and his administration have emphasised improving public safety and recruiting businesses back to San Francisco, efforts that have paid huge dividends. Hotels generated more than USD 2 billion in tax revenue in 2025. These taxes collectively fund essential public services, from schools and infrastructure improvements to first responders, further underscoring the importance of a strong tourism sector.
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