CMBS stress peaks in the San Francisco hotel market

The San Francisco metro remains one of the least recovered hotel markets in the U.S. While the market still ranks in the top five nationally for room rates, the average daily rate, or ADR, is more than 10% below 2019 levels. Persistent negative national media coverage has tarnished the city’s tourism image, while the return of international visitation remains sluggish. As a result, revenue per available room, or RevPAR, is just over 20% below pre-pandemic benchmarks and is not expected to surpass previous peak levels within the next five years.