San Francisco Hospitality Sector Poised for Growth as Blackstone Invests in Iconic Four Seasons Property Amid Post-Pandemic Recovery

Published on December 3, 2025

San Francisco is witnessing renewed energy in its hospitality and real estate sectors, highlighted by global investment firm Blackstone’s acquisition of the downtown Four Seasons Hotel. The 277-room property reportedly changed hands for around $130 million, marking a significant milestone in the city’s ongoing post-pandemic recovery. The transaction signals growing investor confidence in San Francisco as a prime destination for both business and leisure travelers.

The city’s hotel market has endured a challenging period, with tourism declines, negative media coverage, and safety concerns contributing to one of the slowest recoveries in the nation. The reported price for the Four Seasons equates to roughly $470,000 per room, reflecting the steep discounts that have characterized recent hospitality transactions. Despite this, rising demand from technology firms and surging commercial rents are creating a foundation for renewed growth, helping to revitalize the downtown market.

Recent investments illustrate this emerging momentum. Two of San Francisco’s largest hotels were recently sold to major investment firms after years of uncertain ownership. Together, these properties—comprising nearly 3,000 rooms—were acquired for approximately $408 million, representing a significant reduction from prior appraised values. These deals underscore both the prior market difficulties and the renewed optimism among investors seeking long-term growth opportunities in the city.

Industry forecasts point to a steady upward trajectory for San Francisco’s hotels. Revenue per available room (RevPAR) is expected to rise by about 6% in 2025 and 2026, supported by major events and international gatherings that are projected to attract large volumes of visitors. Both business and leisure travelers are anticipated to return in increasing numbers, contributing to higher occupancy levels and improved average daily rates.

The city is also seeing new hotel developments as part of its recovery strategy. A 410-room property was recently acquired for $115 million, while the planning commission approved a 29-story hotel at 570 Market Street, featuring 211 rooms. Originally proposed in 2019, this project is now expected to align with growing demand in the downtown hospitality market, reflecting confidence in the city’s potential as a top-tier travel destination.

Investment activity is not limited to hotels. Blackstone, partnering with another firm, recently purchased an office building at 300 Howard Street for $111.34 million, the largest post-pandemic office transaction in San Francisco. This acquisition illustrates the broader confidence in the city’s economic recovery, as demand for office and hotel space grows alongside technology-driven business expansion.

Analysts note that these transactions are part of a wider pattern, indicating that San Francisco is gradually regaining its appeal as a global hub for travel and investment. Technology sector growth, upcoming international events, and rising tourism all contribute to the market’s renewed strength. These trends are encouraging both domestic and international investors to reconsider the city’s long-term potential.

The Four Seasons acquisition, alongside other major hotel and office deals, reflects a strategic shift in San Francisco’s investment landscape. With increasing visitor numbers and ongoing development, downtown properties are expected to benefit from improved performance and higher valuations. The resurgence in hospitality and commercial real estate highlights the city’s ability to adapt and recover after several challenging years.

Looking ahead, San Francisco’s combination of event-driven tourism, expanding business activity, and growing investor interest suggests a period of sustained recovery and growth. The Blackstone deal exemplifies the renewed confidence in the city’s future, positioning it once again as a premier destination for travelers, corporations, and real estate investors alike.

As the city prepares for high-profile global events and continues to attract business investments, the downtown hospitality sector is expected to experience further growth, solidifying San Francisco’s status as a resilient and thriving urban center.