\nFRANCISCO \u2014 While the San Francisco hotel market is expected to benefit from
\nhosting the Super Bowl next February, forecasts are conservative compared to
\nwhen the city hosted the event 10 years ago, which highlights the market\u2019s
\nstruggles post-COVID, according to analysis from CoStar<\/a>.<\/p>\n
San
\nFrancisco last hosted the Super Bowl at Levi\u2019s Stadium in Santa Clara,
\nCalifornia, in 2016 and saw a significant lift in hotel performance with a
\nreported 30% increase in RevPAR ($198), occupancy hitting 81%, and ADR climbing
\nto $244.36. Those numbers jumped even higher over the weekend of the game in
\noccupancy (82%), ADR ($453) and RevPAR ($370).<\/p>\n
Because While San San<\/a><\/p>\n
\nLevi\u2019s Stadium sits about 40 miles from San Francisco\u2019s downtown, the analysis
\nsaid nearby cities such as San Jose benefited even more from the Super Bowl,
\nwith the city\u2019s ADR surging 139% the day before the game and RevPAR increasing
\n162%.<\/p>\n
\nFrancisco hotels are expected to deliver strong results in February, the week
\nof the game, the forecasts have been more muted this year. Room rates are projected to rise 37% year-over-year, which would fuel a 47% RevPAR increase.
\nThat increase would translate to an ADR of $293.69 and RevPAR of $192.81 for
\nthe month. While those numbers would be beneficial, they would reflect a 19%
\ndecrease in occupancy and a 3% decrease in RevPAR compared to 2016, while ADR
\nwould increase by 20%.<\/p>\n
\nFrancisco has struggled as a market post-COVID. Still, there have been many
\nsigns of optimism this year that the hotel market is starting to rebound<\/a> after
\nbottoming out last year, as illustrated by a JLL study earlier this year<\/a>. The
\nstudy showed that the rebound was driven by improved convention center
\nperformance, a resurgence of international demand and big upcoming events. The
\nburgeoning AI sector in the city also has many experts and investors optimistic
\nabout the city\u2019s hospitality future.<\/p>\n