San Francisco hotel room prices are up almost 40 percent in the past five years. Average rates in the city have reached $200 per night, up from $123 five years ago, with four years of double-digit growth in cost per room contributing to this.
Conventions drive much of The City's hotel and visitor traffic, much of it related to the city's tech boom. San Francisco recently hosted Google's developer conference, and Oracle OpenWorld and Salesforce.com's Dreamforce are major events circled on every hotelier's calendar. medical groups are also steadily streaming to San Francisco for their events, taking up almost 20 percent of the 1 million hotel rooms to be occupied by convention-goers over a year.
There are about 33,800 hotel rooms in The City, a figure that is likely to remain steady even as demand grows.