New Report: Hotels Generate $12 Billion for San Francisco's Tourism Economy

Far-reaching impact includes nearly 50,000 jobs, $2 billion in taxes driven by close collaboration with city leaders

SAN FRANCISCO, June 25, 2026 /PRNewswire/ -- Hotels generated more than $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 $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)
• 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," 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 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 improving 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," 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 emphasized improving public safety and recruiting businesses back to San Francisco, efforts that have paid huge dividends. 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.

View the full Oxford Economics report.

About the American Hotel & Lodging Association
The American Hotel & Lodging Association is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide, including iconic global brands, 80 percent of all franchised hotels, and the 16 largest hotel companies in the United States. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry forward. Learn more at www.ahla.com.

About the California Hotel & Lodging Association
The California Hotel and Lodging Association is the leading resource and advocate for California's more than 6,000 hotels, motels and boutique inns that employ more than 235,000 workers. CHLA, established in 1893, is the largest state lodging industry association in the nation and is a partner with the American Hotel & Lodging Association. For more information, go to www.calodging.com.

Contact
AHLA: Haleigh Hildebrand, [email protected], 202-746-0220
CHLA: Pete Hillan, [email protected], 831-227-5984

SOURCE California Hotel & Lodging Association