New midyear forecast revisions reveal a widening divide in California’s hotel market recovery heading into the second half of 2025. Updated projections for revenue per available room show northern California markets gaining momentum, while southern and coastal regions grapple with decelerating growth and softening demand.
Bay Area bounces back while coastal leisure markets feel the strain
San Francisco leads California’s hotel recovery with key event tailwinds, while San Diego sees growth taper amid shifting demand dynamics
CoStar Analytics
July 24, 2025 | 1:51 P.M.
RELATED ARTICLES
This news story is available exclusively to CoStar subscribers.
Watch the video to learn how you can access industry leading CRE news and the data analytics you need to drive success.
This news story is available exclusively to CoStar subscribers.
Ready to Learn More?
Sign Up For a Personalized Demo.
Sign Up For a Demo To Learn More.
Already A Subscriber? Sign In