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Apex Assessment

Hotel Industry Update - San Francisco / Bay Area Edition

August 14, 2025
Category: Apex Assessment

San Francisco’s hotel market — still the least recovered in America post 2020. — saw renewed investor interest with two notable recent acquisitions. The nearly century-old Mayflower Hotel (99 rooms) near Union Square sold for $9.9M to local investors and lifetime hoteliers, marking its first change in ownership since 1927. The Tilden Hotel (118 rooms) sold for $9.3M, less than 20% of its $48M price from a decade ago. These transactions come as the city’s hospitality sector continues to face headwinds. Prior to the pandemic, San Francisco hotels enjoyed roughly 80% occupancy, $250 ADR, and some of the highest RevPAR in the nation. As of 2025, occupancy stands at 67.1%, with 12-month average RevPAR still well below pre 2020 numbers. While challenges remain, local investors express optimism in the city’s rebound, citing increased tourism activity and renewed confidence in downtown revitalization efforts.

Apex Insight

The Bay Area remains a market of contrasts and contradictions — lingering softness in demand and rate, yet unique opportunities for well-capitalized buyers to acquire at historically low pricing. The recent sales of the Mayflower, Tilden, and other San Francisco hotels underscore a rare moment for strategic acquisitions in prime locations. At Apex Lodging Advisors, we are actively engaged with investors targeting San Francisco and the broader Bay Area, identifying properties with strong repositioning potential. For those who can navigate dubious market conditions, the combination of discounted entry prices and the Bay Area’s long-term tourism appeal could translate into outsized returns when performance rebounds. . . Call us to find out more!

 

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