Hotel development plummets in Bay Area as lodging uncertainties linger

Construction of hotels has plunged in the Bay Area, a nosedive that was unleashed by stubborn problems for hotel financing and elevated construction costs, a new report from Atlas Hospitality Group shows.

An estimated 15 hotels with an aggregate 1,610 rooms were under construction in the Bay Area during 2025, representing a sharp decline from the equivalent totals in 2024, according to the report from Atlas Hospitality. This news organization derived the totals from figures that Atlas Hospitality compiled for its report.