According to an Oxford Economics study released today by the American Hotel & Lodging Association and the California Hotel & Lodging Association, hotels generated more than $12 billion in economic impact in San Francisco in 2025, propelling restaurants, retailers, cultural institutions and small businesses,
Each hotel room night drives about $900 in citywide spending per visitor, according to the report, which also found:
- Hotels support nearly 50,000 jobs (~16,000 direct job/~34,000 ancillary jobs)
- Hotels pay $2 billion in total taxes
- Hotel guests spent $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," Rosanna Maietta, president & CEO of AHLA, said in a statement. "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 business 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 business climate, led by Mayor Daniel Lurie's policies to improve public safety and revitalize critical commercial districts, has increased tourism and bolstered the return of conventions. The partnership between the city and business has reframed the 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," Lurie said. "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."
Hotels generated more than $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.