Hotels & Accommodations
France, UK, Spain Lead Luxury Hotel Bookings as Italy Slips, US and Canada Hold Strong

Published on
August 8, 2025 |
By: Tuhin Sarkar
France, UK, and Spain lead luxury hotel bookings this year, showing strong growth and global appeal. France, UK, and Spain attract high-end travellers with world-class service, iconic destinations, and premium experiences. At the same time, Italy slips in the rankings, losing its long-held top position to its European neighbours. However, US and Canada hold strong in the luxury segment, maintaining steady demand and market share. France, UK, and Spain continue to capture the hearts of travellers seeking both style and substance. Meanwhile, Italy slips as travel patterns shift, but US and Canada hold strong by offering exclusive experiences and consistent service. This shift marks a new balance in global luxury hospitality. France, UK, and Spain are now shaping the future, while Italy slips behind, and US and Canada hold strong against changing travel trends.
France is back at the top of Europe’s luxury travel map. In July, Global Travel Collection (GTC) data revealed a 64% year-over-year jump in luxury hotel bookings across the country. Paris, Nice, and Marseille led the surge, marking the first time France has outpaced Italy in recent years. The figures show shifting traveller demand, with high-spending clients seeking diverse European destinations instead of concentrating solely on one country. For the first time since 2019, France’s allure has overtaken Italy’s long-standing dominance.
France Sees Record Growth in Luxury Travel
Global Travel Collection advisors in the US and UK recorded a dramatic increase in bookings for France this summer. Paris, with its timeless charm, was the clear favourite, clocking 2,710 booked nights. Nice followed with 1,313 nights, while Marseille recorded 286 nights. This growth signals that travellers are not only flocking to iconic capital cities but also to coastal and cultural hubs. France’s performance this summer underscores a post-pandemic trend—luxury travellers are willing to spend more for authentic, high-end experiences in varied locations.
The Hotels Leading France’s Luxury Boom
Among the most sought-after hotels was Le Bristol Paris, part of the prestigious Oetker Collection, celebrated for its Parisian elegance. In the south, The Maybourne Riviera, dramatically perched over the Mediterranean, became a magnet for ultra-wealthy travellers. These properties highlight the increasing preference for exclusive service, prime locations, and exceptional amenities. With average daily rates hitting $1,400, GTC’s clientele is clearly prioritising quality and uniqueness over price sensitivity, reshaping the European luxury accommodation market.
GTC’s Global Reach and Spending Power
In 2024 alone, GTC advisors generated $2.3 billion in luxury travel sales, organising trips to 179 countries. The network planned nearly 900 ultra-luxury journeys, each valued at over $100,000. These figures reflect the influence of curated, high-touch travel experiences in the luxury segment. For France, this translates into higher spending per trip, longer stays, and greater demand for personalisation—elements that reinforce its status as a premier destination for affluent travellers.
How France Defines True Luxury
France uses a clear and official system to rank its hotels. Atout France, the national tourism agency, awards between one and five stars based on service, comfort, and facilities. On top of this, it awards the Palace label to five-star hotels that go even further. These hotels must pass a review by experts who look at service, heritage, and the overall guest experience.
The Palace label is rare. Only 31 hotels in the country hold it. These hotels combine beauty, history, and perfect service. Many also offer fine dining restaurants, often with Michelin stars. This makes them popular with guests who want more than just a luxury stay.
Paris: The World’s Capital of Palace Hotels
Paris has the largest group of Palace hotels in one city. It offers a mix of grand landmarks and modern designs. Each has its own style but shares a focus on service and detail.
Some of the most famous include the Four Seasons Hotel George V, known for its Art Deco style and Michelin-starred restaurants. Le Bristol Paris, with its private garden, is another symbol of French elegance. Hôtel de Crillon brings 18th-century charm to the Place de la Concorde. Hôtel Plaza Athénée and Le Meurice mix glamour with strong links to Paris’s fashion and art scenes.
Other modern palaces like La Réserve, Park Hyatt Paris-Vendôme, and The Peninsula Paris show that new luxury can stand beside the historic greats. Together, these hotels keep Paris at the top of the world’s luxury travel market.
The French Riviera: Seaside Glamour and Modern Icons
The Côte d’Azur and Provence are famous for summer holidays filled with sunshine, yachts, and fine dining. This region has some of the most celebrated luxury hotels in Europe.
The Hôtel du Cap-Eden-Roc in Antibes is a true legend, with terraces overlooking the Mediterranean. The Grand-Hôtel du Cap-Ferrat offers clifftop gardens and private pool clubs. In Cannes, the Carlton recently reopened after a major restoration and is already winning top global awards. Nice’s Le Negresco mixes Belle Époque style with museum-level art collections.
Saint-Tropez is home to several Palaces, including Cheval Blanc, Château de la Messardière, and La Réserve Ramatuelle. These hotels combine beach clubs, private villas, and Michelin-starred dining. In the Provence highlands, La Bastide de Gordes and Villa La Coste add art and wine to the luxury mix.
The French Alps: Winter Palaces in the Snow
France’s luxury market is not just for summer. The French Alps, especially Courchevel 1850, have ski-in, ski-out Palace hotels that offer both sport and comfort.
Cheval Blanc Courchevel is a small but highly exclusive property with direct slope access. Les Airelles looks like a fairy-tale castle but offers modern service and dining. Hôtel Barrière Les Neiges blends chalet style with private cinemas and luxury spas. Aman Le Mélézin, part of the global Aman brand, adds its minimalist design to the Alpine setting.
These hotels make winter in France as appealing to luxury travellers as summer on the Riviera.
The Atlantic Coast and Wine Regions: Heritage Meets Wellness
Beyond Paris, the Riviera, and the Alps, France’s luxury map includes the Atlantic coast and wine country.
In Biarritz, the Hôtel du Palais was once Napoleon III’s summer home and still has the feel of imperial elegance. Near Bordeaux, Les Sources de Caudalie combines a vineyard setting with a spa famous for its wine-based treatments. In Champagne, the Royal Champagne Hotel & Spa offers panoramic views of vineyards, while Domaine Les Crayères is a grand château with two-Michelin-star dining. The Loire Valley’s Les Sources de Cheverny gives guests lakes, forests, and château-style rooms.
These hotels give travellers the chance to mix relaxation, food, and history in one trip.
Corsica: Wild Beauty with High-End Comfort
Corsica offers Mediterranean beaches and mountain scenery with a less crowded feel than the Riviera. Casadelmar in Porto-Vecchio has modern design and a two-Michelin-star restaurant. La Signoria near Calvi offers villas with views of both the sea and the hills. These properties mix natural beauty with high-end service, making them ideal for travellers seeking peace and privacy.
The Size and Strength of France’s Luxury Hotel Sector
France has 463 five-star hotels, showing the scale of its high-end offer. The 31 Palaces are the very top of this list. In 2024, luxury and upscale hotels saw better revenue growth than mid-market hotels. Investors spent €2.7 billion on hotels, the most since 2016, with Paris taking most of that total.
Even with global travel shifting, luxury demand stayed strong. Guests at this level are less sensitive to price and more focused on unique experiences. That is why France’s mix of city glamour, coastal resorts, ski retreats, and wine estates works so well.
Recognition Beyond France: Michelin Keys and Global Awards
In 2024, the Michelin Guide launched its “Keys” to rate hotels, just as it does for restaurants. In France, 24 hotels received three Keys, the top level. Another 38 earned two Keys, and 127 earned one Key. This adds another trusted sign for travellers looking for quality stays.
Global awards also shine on France. The Carlton Cannes won Forbes Travel Guide’s five-star rating in 2025 after its renovation. These honours help France keep its image as a leader in the luxury travel world.
Why Luxury in France Keeps Growing
France’s success comes from more than just beautiful buildings. The country blends strong traditions with innovation. Palace hotels honour their history but also invest in updates. The service is deeply personal, with staff trained to anticipate guest needs. Dining is a major part of the experience, with many hotels offering Michelin-starred restaurants.
The variety of locations also helps. Travellers can enjoy Paris in winter, the Alps in ski season, the Riviera in summer, and the wine regions in autumn. This year-round appeal keeps occupancy and rates strong.
The Outlook for 2025 and Beyond
The signs for France’s luxury hotel market are positive. Demand is high in every season, and new investment is coming into both historic and modern properties. Paris is expected to keep its position as the top luxury city, while the Riviera and Provence will remain summer magnets.
The Alps will see continued demand for luxury ski holidays, especially if snow levels remain stable. Wine regions and the Atlantic coast will grow as travellers look for less crowded but still premium experiences. Corsica will keep its niche appeal for those wanting luxury in a wilder setting.
With its Palace label, strong five-star base, and a growing list of global awards, France is likely to remain a leader in luxury travel for years to come. The country’s mix of heritage, style, and service will keep drawing the world’s most discerning travellers.
Italy Slips to Second Place in Luxury Travel
Italy still holds strong appeal, recording 777 booked nights in Rome, 725 in Milan, and 679 in Naples. Rome’s Hotel Eden, Lake Como’s Passalacqua, and Sardinia’s glamorous Romazzino remain client favourites. However, the distribution of travel demand suggests Italy’s once unchallenged dominance has eased. GTC’s latest data points to a more balanced spread of tourism spending across Europe, reducing over-reliance on a single country and allowing other destinations to shine.
UK Holds Third Spot with Steady Growth
The United Kingdom secured third place, with a 13% rise in July bookings over 2024. London continued to attract affluent visitors, particularly to properties like Ham Yard Hotel in Soho, Claridge’s in Mayfair, and Flemings Mayfair. The mix of heritage, urban vibrancy, and exclusive service remains a compelling combination for high-net-worth travellers. This growth reflects the UK’s ability to maintain relevance in a competitive European luxury market.
Spain Joins the Top Five Luxury Destinations
Spain’s July performance earned it a place among the top five destinations for GTC travellers. Barcelona’s hotels, including the Majestic Hotel & Spa, Mandarin Oriental, and Le Meridien, saw strong demand. Madrid’s Four Seasons and Ibiza’s Nobu Hotel Ibiza Bay and Six Senses Ibiza also ranked high. The combination of cultural depth, Mediterranean glamour, and luxury infrastructure is positioning Spain as an increasingly important player in Europe’s high-end travel scene.
France Rises to the Top of European Luxury Travel
France has taken the number one spot in luxury hotel bookings this summer. New figures from the Global Travel Collection (GTC) show that bookings in France grew by 64% in July compared to last year. This is the first time since 2019 that France has beaten Italy in the luxury travel market. The demand is being led by Paris, Nice, and Marseille.
GTC advisors in the United States and the United Kingdom booked 2,710 nights in Paris alone. Nice followed with 1,313 nights, and Marseille recorded 286 nights. This strong growth shows that France is attracting both city and coastal travellers. It is not only the capital that is drawing attention. The French Riviera and the southern ports are also in high demand.
Why France Is Winning Over Global Luxury Travellers
France’s success is the result of a mix of factors. The country has invested heavily in high-end hotels and experiences. Paris remains a centre for art, fashion, and fine dining. Nice and Marseille offer a blend of Mediterranean charm and cultural heritage. Hotels such as Le Bristol in Paris and The Maybourne Riviera in the south provide world-class service and stunning locations.
Another reason is traveller preference. Many luxury travellers want variety and new experiences. After years of Italy dominating, there is now a shift towards exploring other European countries. France offers both the glamour of the city and the calm of the coast, which makes it appealing to a wide range of visitors.
The Power of GTC in Luxury Travel
Global Travel Collection is one of the most influential networks of luxury travel advisors in the world. In 2024, GTC generated $2.3 billion in luxury travel sales. Its clients travelled to 179 countries. The average daily hotel rate for GTC bookings was $1,400. Advisors planned nearly 900 ultra-luxury trips worth over $100,000 each.
These numbers show the buying power of GTC’s clients. Their choices shape trends in the luxury market. When GTC’s data shows France leading, it reflects the preferences of some of the most affluent travellers in the world. This influence also extends beyond Europe, as their bookings impact global hotel revenues.
Italy Slips but Remains a Strong Player
Italy is still a major luxury destination, even though it has fallen to second place. In July, GTC booked 777 nights in Rome, 725 in Milan, and 679 in Naples. These cities remain favourites for high-end travellers. Rome’s Hotel Eden, Passalacqua on Lake Como, and Romazzino in Sardinia are some of the most booked properties.
Italy’s drop in position is not due to a lack of appeal. Instead, it reflects a more balanced spread of demand across Europe. Travellers are still flocking to Italy, but they are also exploring other countries. This change could benefit both Italy and its competitors by easing pressure on overcrowded destinations.
The UK’s Steady Rise in Luxury Bookings
The United Kingdom ranked third in GTC’s July data. Bookings were up 13% compared to the same month last year. London remains a key attraction for luxury travellers. Properties like Ham Yard Hotel in Soho, Claridge’s in Mayfair, and Flemings Mayfair continue to draw high-end guests.
The UK’s appeal lies in its mix of history, culture, and modern luxury. Visitors can enjoy theatre in the West End, shop in Bond Street, and dine in Michelin-starred restaurants. This steady growth shows that the UK is maintaining its place in the European luxury travel market.
Spain Joins the Top Five Luxury Destinations
Spain has made its way into GTC’s top five destinations for July. Barcelona is one of the most popular cities. Hotels like the Majestic Hotel & Spa, Mandarin Oriental, and Le Meridien are in high demand. In Madrid, the Four Seasons is a favourite, while Ibiza’s Nobu Hotel and Six Senses appeal to those seeking beachside luxury.
Spain’s strength is in its diversity. It offers world-class cities, beach resorts, and cultural experiences. This variety makes it an attractive alternative for luxury travellers who want more than one type of holiday in a single trip.
Luxury Hotel Trends Across Europe
The luxury hotel market in Europe remains strong in 2025. While overall hotel performance has been mixed in some months due to high comparison points from 2024, luxury hotels continue to lead in revenue per available room (RevPAR). Even when mid-scale and budget hotels face flat growth, luxury properties still see increases.
In 2024, Europe’s hotel sector saw very few weeks of decline, with luxury hotels often driving the highest gains. France, Italy, the UK, Spain, and Germany all recorded strong RevPAR growth in late 2024, and this trend is continuing in 2025.
The US Luxury Hotel Market Shows Resilience
In the United States, luxury hotels are also outperforming other categories. Year-to-date data through April 2025 shows luxury RevPAR up by 7.1%, while economy hotels grew by less than 1%. Weekly figures this summer show luxury as the only chain scale with consistent RevPAR growth.
High-end travellers in the US are willing to pay more for exclusive experiences. Luxury hotels in major cities and resort destinations are maintaining strong rates, even as some mid-market hotels see softer demand. This resilience is a sign that the top tier of the market is less affected by economic fluctuations.
Canada’s Luxury Travel Momentum
Canada has posted back-to-back months of revenue growth in 2025. In June, RevPAR rose by 4.4%, with an average daily rate of CAD 239.06 and occupancy at 75.6%. While public data does not separate luxury hotels from other categories, the overall strength of the market suggests that premium properties are also benefiting.
Cities like Vancouver, Toronto, and Montreal attract both domestic and international luxury travellers. High-end mountain resorts in Alberta and British Columbia also perform well in summer, offering unique experiences that match the standards of Europe’s luxury destinations.
Why Luxury Keeps Outperforming
Luxury hotels have an advantage in the current travel market. They attract high-spending guests who are less sensitive to price changes. They also offer experiences that cannot be easily replaced—personalised service, prime locations, and exclusive access to cultural or natural attractions.
In Europe, this means cities like Paris and Rome can command rates of over $1,000 per night and still see high demand. In the US and Canada, top-tier properties can sustain strong occupancy even when mid-tier hotels face challenges.
What This Means for 2025 and Beyond
If these trends continue, 2025 will see more investment in luxury hotels, especially in France. New openings in Paris, along the Riviera, and in cultural hubs like Lyon could keep France ahead of its competitors. Italy is likely to innovate and promote lesser-known regions to reclaim the top spot.
Spain and the UK are well-positioned to attract more luxury travellers through unique events, cultural experiences, and seasonal offers. In North America, major cities and exclusive resorts will continue to benefit from strong demand at the top end of the market.
The global luxury travel market is expanding. As more travellers seek high-quality, personalised experiences, the competition between destinations will grow. France’s rise in 2025 is proof that a well-rounded offering of city glamour, coastal beauty, and exceptional service can change the rankings in this competitive sector.
Analysis: A Shift in European Luxury Travel Patterns
The data suggests a significant rebalancing in European tourism. For the first time since 2019, France leads the market, driven by its ability to combine urban sophistication, coastal relaxation, and luxury hospitality. Italy’s slip is less about decline and more about diversification of traveller preferences. The UK and Spain’s strong showings point to an increasingly competitive luxury travel landscape. This shift benefits the wider tourism sector by distributing visitor numbers more evenly and reducing pressure on single destinations.
What This Means for Luxury Travel in 2025
If this trend continues, 2025 could see further expansion in France’s luxury offerings. More investment in high-end coastal resorts, boutique city hotels, and exclusive cultural experiences could follow. Italy is likely to innovate to reclaim the top spot, while Spain and the UK could push to capture greater market share. For travel advisors, these shifts mean more opportunities to craft unique, cross-country itineraries for affluent clients seeking variety, exclusivity, and memorable experiences.
Hotels & Accommodations
Paris, Nice, And Marseille Dominate Luxury Hotel Bookings In France

Published on
August 8, 2025 |
By: TTW News Desk
France has regained its status as the top choice for luxury hotel bookings in July 2025, according to recent data from the Global Travel Collection. The data reflects bookings made by luxury travel advisors from both the U.S. and the U.K. It shows a 64% year-over-year increase in bookings for France, making it the most popular European destination for high-end travelers. This increase comes as Paris, Nice, and Marseille become the leading cities, pushing Italy into second place for the first time in years.
This shift in interest highlights a growing appeal for French destinations. It is the first time France has outpaced Italy in luxury bookings since 2019. For those looking for the finest accommodations and experiences, the rise in French bookings signals the country’s lasting attraction in the high-end tourism market.
The Rise of France: Paris, Nice, and Marseille Lead
The figures for July 2025 show that Paris remains the crown jewel of French tourism, with 2,710 nights booked in its top luxury hotels. Paris is known for its iconic landmarks, upscale shopping areas, and world-class dining options. These factors continuously attract tourists seeking an exceptional cultural experience. Hotels like Le Bristol Paris, a symbol of elegance, and Oetker Hotels, which provide Parisian sophistication, are favorites among travelers.
Following Paris, Nice ranked second in bookings, with 1,313 nights reserved. Nice is a Mediterranean paradise, celebrated for its stunning coastline, charming streets, and lively French Riviera vibe. Luxury hotels like The Maybourne Riviera, overlooking the Mediterranean Sea, offer guests outstanding views and lavish experiences.
Marseille, the third most popular destination in France for luxury bookings, accounted for 286 nights in July. This historic port city, with its rich cultural background, is becoming a favorite for tourists seeking an authentic Mediterranean experience paired with luxury.
The Italian Competition: Italy Takes Second Place
While France has climbed to the top, Italy remains a major destination for high-end travelers, holding the second position in luxury bookings. Rome, Milan, and Naples were among the most booked cities for luxury stays in Italy, with 777 nights reserved in Rome, 725 nights in Milan, and 679 nights in Naples.
Rome, known for its timeless history and vibrant energy, continues to be a popular choice. Hotels like Hotel Eden, located in the heart of the city, and Passalacqua, on Lake Como’s shores, keep attracting those looking for luxurious, intimate experiences in Italy’s capital.
Milan, recognized as Italy’s fashion and design hub, also brought in a significant number of luxury travelers in July. Romazzino, a Belmond Hotel on Sardinia, is a top pick for those seeking a glamorous getaway.
The U.K. and Spain: Close Contenders in the Rankings
The United Kingdom performed well in the rankings, landing in third place with a 13% increase in luxury bookings compared to July 2024. London is still the main hub for luxury travel, with standout hotels like Soho’s Ham Yard Hotel, the iconic art deco Claridge’s, and the exclusive Flemings Mayfair continuing to draw high-end tourists. These hotels, noted for their unique designs and luxurious services, provide unmatched experiences for travelers visiting the U.K.
Meanwhile, Spain is gaining popularity, with Barcelona and the Balearic Islands emerging as favorites for luxury travelers. Barcelona attracted many high-end visitors, with hotels such as the Majestic Hotel & Spa, Mandarin Oriental Barcelona, and Le Meridien Barcelona being popular choices. Demand for luxury stays in Ibiza also grew, with notable hotels like the Nobu Hotel Ibiza Bay and Six Senses Ibiza leading the way.
The Growing Trend of Balanced European Travel Demand
Increased interest in France has shifted the previous dominance of Italian tourism. Angie Licea, President of Global Travel Collection, notes that the rise in French luxury bookings shows a growing demand for diverse destinations across Europe. For years, Italy led the luxury travel market, but France’s recent growth indicates that travelers are exploring a wider range of European locations.
This trend benefits places like Nice, Marseille, and Reykjavík, which were once overshadowed by well-known Italian cities. The French Riviera and the historic areas of Marseille now have a spot on the luxury travel map, providing new and exciting opportunities for travelers seeking different experiences.
Conclusion: A Positive Shift for European Tourism
The latest data from Global Travel Collection underscores a significant shift in the European luxury travel market. With France rising to the top, led by Paris, Nice, and Marseille, the competition with Italy suggests a positive movement toward more diverse European travel. This trend is encouraging for tourism overall, indicating that travelers are discovering new destinations and spreading their visits more evenly across the continent.
For tourism professionals and travelers, this new dynamic in European luxury tourism offers an exciting future for those seeking the best in high-end accommodations, unique cultural experiences, and stunning scenic views. With France leading in bookings and other countries following, the future of luxury European travel looks bright for both established and emerging destinations.
(Source: Global Travel Collection, Hellenic Chamber of Hotels, U.S. and U.K. Luxury Travel Advisors, Rightmove, Lloyds Bank)
Hotels & Accommodations
Is Berkeley’s Hotel Industry Overcoming Rising Costs and Soft Demand with Resilience and Steady Tourism Recovery Compared to San Francisco and Oakland? Here’s More New Information For You

Published on
August 8, 2025 |
By: TTW News Desk
Berkeley, a city known for its academic legacy and vibrant cultural scene, has not been immune to the struggles that have beset the hospitality industry in the Bay Area. Since the pandemic, the local hotel market has faced a range of challenges, from a decline in demand to rising operational costs. However, while several hotels have closed their doors or filed for bankruptcy, there are signs of resilience in Berkeley’s hotel industry. The city’s steady recovery, aided by its unique position as a college town, provides an interesting perspective on how some areas are faring better than others in the region.
Soft Demand and Rising Costs Impact Berkeley’s Hotel Market
The aftermath of the pandemic has left a significant mark on the global tourism industry, and Berkeley’s hospitality sector has not escaped its effects. Like many cities, Berkeley has seen softer demand for hotel rooms, as travelers continue to navigate concerns over safety, convenience, and cost. The double impact of reduced demand for both business and leisure travel, coupled with rising costs for essentials such as labor and supplies, has made it increasingly difficult for local hotels to remain profitable.
While Berkeley’s hotel tax revenues have dropped, they have not suffered the same dramatic losses as those seen in other parts of the Bay Area. Still, some of the city’s largest hotels have faced serious financial challenges. For example, the DoubleTree by Hilton, the largest hotel in Berkeley, located at the waterfront, faced financial turmoil after ceasing rent payments on its city-owned property earlier this year. The property was reportedly at risk of defaulting on a $48.3 million loan, underlining the pressures many hotels face as they attempt to recover from the pandemic’s economic toll.
The University Inn and Suites in West Berkeley, another local hotel, declared bankruptcy in June, highlighting the difficulties small and mid-sized hotels are experiencing. This follows a trend seen across the country, where hotels that rely on a combination of transient business, convention traffic, and tourism are feeling the strain. A more significant concern for Berkeley was revealed in May when it was disclosed that several large hotels had stopped paying their nightly room taxes. This issue has contributed to a shortfall in the city’s hotel tax revenues, which fell below pre-pandemic levels.
Despite these setbacks, Berkeley’s hospitality sector has shown surprising resilience. While hotel occupancy rates in the first half of 2025 were consistently lower than in 2019, the city’s hotel revenues have remained relatively stable. This has been attributed to the consistent flow of visitors, drawn in part by Berkeley’s prominent position as a college town and its proximity to major Bay Area attractions.
Shifting Hospitality Landscape in Berkeley
Berkeley’s unique identity as a college town has played a crucial role in its ability to weather the storm. While larger cities like San Francisco and Oakland have been plagued by significant declines in convention business and corporate travel, Berkeley has maintained a steady stream of visitors related to the University of California, Berkeley. This steady influx of students, academics, families visiting students, and faculty has provided a buffer against the broader declines seen in the hotel industry. The consistent demand from these visitors has helped local hotels maintain a relatively stable revenue base, compared to other parts of the Bay Area.
Moreover, Berkeley has also seen some growth in its hotel inventory. The addition of the Residence Inn in downtown Berkeley in 2021 has helped offset the losses from the closure of some older hotels. The Residence Inn, with its extended-stay accommodations, has contributed to an increase in the number of available hotel rooms in the city. As a result, Berkeley’s total hotel room inventory has grown slightly, from 1,471 before the pandemic to 1,514 rooms today. This growth in room availability has helped ensure that the city is not entirely dependent on any single sector of the hospitality industry.
However, not all hotels in Berkeley have remained open. The Bancroft Hotel, a historic building located across from the UC Berkeley campus, closed its doors after its owner sought city approval to convert the property into student housing. This trend of repurposing hotels for non-tourism uses reflects broader shifts in the region’s hospitality market, as hotels increasingly compete with short-term rental platforms like Airbnb and other alternative accommodations.
The Impact of Rising Costs on Berkeley’s Hotel Industry
As with other parts of the Bay Area, Berkeley’s hotels are grappling with rising costs that have put pressure on their profitability. These costs have been exacerbated by inflation, particularly in labor, insurance, and supply chain disruptions. The increased cost of doing business has made it more difficult for hotels to remain competitive, especially for mid-range and lower-tier properties. For example, the rise in labor costs has made it harder for hotels to maintain their operations without increasing prices, which could deter budget-conscious travelers.
The increase in costs also makes it difficult for local hotels to remain competitive with alternative accommodations such as Airbnb, which often offer lower prices and more flexible options for travelers. This shift has made it harder for hotels to maintain occupancy rates, and many have had to adjust their business models to meet the changing needs of travelers. Some hotels, like the Residence Inn, have adapted by targeting longer-term stays and offering special pricing for student accommodations, reflecting a broader trend in the market toward more flexible, affordable travel options.
Tourism Recovery in Berkeley: A Steady, Long-Term Process
While other parts of the Bay Area have seen slower recoveries, particularly in the San Francisco and Oakland markets, Berkeley’s tourism industry has shown a steady rebound. The city has benefitted from its unique position as a hub for academia and culture, as well as its status as a more affordable alternative to some of the region’s more expensive tourist destinations. Berkeley’s tourism office, Visit Berkeley, has focused on leveraging these advantages to position the city as a desirable destination for visitors from across the globe.
One of the key factors driving Berkeley’s recovery has been its growing reputation as a welcoming city for a diverse range of travelers. Visit Berkeley’s marketing campaigns have focused on attracting visitors from Mexico and Canada, as well as LGBTQ+ travelers seeking a progressive, inclusive destination. This shift in focus reflects the city’s progressive values and its emphasis on creating an environment where all visitors feel welcome.
Additionally, Berkeley has capitalized on its cultural assets, including its proximity to the UC Berkeley campus, the Lawrence Berkeley National Laboratory, and a host of outdoor activities in the surrounding areas. These attractions, combined with the city’s vibrant dining scene and eclectic neighborhoods, make it an appealing destination for tourists seeking both culture and relaxation.
Berkeley’s Hotel Industry: A Model of Resilience Amid Broader Struggles
Despite the challenges posed by the pandemic, rising costs, and soft demand, Berkeley’s hotel industry has demonstrated resilience. The city has not experienced the steep declines in hotel revenues and occupancy rates seen in nearby cities like San Francisco and Oakland. While there are still obstacles to overcome, the steady flow of visitors and the diversification of the city’s hotel offerings suggest that Berkeley is on a path to sustained recovery.
The situation in Berkeley’s hospitality market offers valuable lessons for other cities grappling with similar challenges. By leveraging its unique position as a college town, focusing on sustainable tourism, and adapting to the changing needs of travelers, Berkeley has been able to navigate the post-pandemic landscape more effectively than many other regions in the Bay Area.
As the tourism sector continues to evolve, Berkeley’s ability to adapt to new trends, from student accommodations to alternative lodging options, will play a key role in ensuring the long-term health of its hotel industry. By focusing on inclusivity, sustainability, and cultural tourism, Berkeley is positioning itself as a key player in the future of Bay Area tourism.
Conclusion
Berkeley’s hotel industry, like much of the Bay Area, faces ongoing challenges as it recovers from the impacts of the pandemic. Rising costs, soft demand, and increased competition from alternative accommodations have put pressure on the local hospitality sector. However, the city’s unique position as a college town, combined with its focus on sustainable and inclusive tourism, has allowed it to weather the storm more effectively than other regions. With steady recovery and a focus on attracting diverse visitors, Berkeley’s hotel industry is poised for a bright future.
Hotels & Accommodations
Berkeley keeps losing hotels, but industry healthier than elsewhere

Berkeley’s college-town identity has helped shield the city from the worst impacts of a hospitality downturn that has battered hotels around the Bay Area. But a string of gloomy stories shows the city isn’t immune from the struggles the hotel industry has faced since the pandemic upended travel.
The biggest hotel in Berkeley, the 378-room DoubleTree by Hilton on the waterfront, stopped paying rent for its city-owned property early this year, and the real estate news site The Real Deal reported it was at risk of defaulting on a $48.3 million loan. The University Inn and Suites in West Berkeley declared bankruptcy in June, the Mercury News reported, a few months after defaulting on a $10.5 million loan.
Staff in Berkeley’s finance office also revealed in May that two large hotels — the city has refused to say which ones — stopped paying their nightly room taxes during the last fiscal year, further reducing hotel tax revenues that are below pre-pandemic levels.
Meanwhile, there have been signs that the industry isn’t as attractive as it once was: The city has acquired six motels and hotels through state programs that provide funding for local governments to convert commercial lodging into housing for the homeless. The Bancroft Hotel, across from UC Berkeley, closed its doors not long after its owner sought city approval to convert the historic building into student housing. And the Residence Inn Berkeley, the 16-story hotel that opened downtown in 2021, also made a play for the housing market: Until recently, it advertised room plans aimed at Cal students that ranged from $999 per month to share a one-bedroom suite with three roommates to $3,999 to have one all to yourself.
The Bay Area has had a slower pandemic recovery than any other large hotel market in the country, according to the real estate analytics firm CoStar. And data from Visit Berkeley, the city’s tourism office, show occupancy rates for hotel rooms during the first half of 2025 were consistently lower than the same period in 2019.
But Visit Berkeley officials say the city is faring better than others around the region: Berkeley hotels’ nightly rates are higher than they were before the pandemic, and overall revenues are about even with pre-COVID figures.
“Berkeley is doing relatively well,” Visit Berkeley CEO Jeffrey Church said. “We do have a consistent flow of people coming in.”
Bay Area hotels struggling
None of Berkeley’s four largest hotels were interested in talking about how business is going these days — representatives for the DoubleTree, Residence Inn Berkeley, Hotel Shattuck Plaza and Graduate by Hilton Berkeley all either declined interview requests or didn’t respond to them. (The Claremont Resort and Club has a Berkeley address, but is actually across the border in Oakland, and pays its taxes there.)
Adrian Larick, a spokesperson for the Residence Inn Berkeley, wrote in an email that the hotel is no longer offering student housing, but would not say whether it had leased rooms to tenants in the past. Staff from the Berkeley Rent Stabilization Board said the hotel has not registered any housing units with the city, which would have been required if any were rented for 14 days or longer.
Data from CoStar show revenue per available room, a core metric in the industry, is down 29% compared to 2019 in the Oakland market, which includes Alameda and Contra Costa counties. It has fallen 25% in the San Francisco market, covering portions of San Francisco, Marin and San Mateo counties.
Michael Stathokostopoulos, CoStar’s senior director of hospitality analytics, said there are several reasons for those declines. Years of negative national press about San Francisco has deterred tourists and organizers of major conventions, Stathokostopoulos said, while corporate travel still hasn’t returned to pre-pandemic levels. Those factors, he said, have been magnified on this side of the bay, where anxiety about crime and the departure of three Oakland sports teams has further reduced demand.
“Some of these demand drivers have not been back to where they were,” Stathokostopoulos said.
Experts hoped international tourism would complete its pandemic recovery this year, but it has instead slumped under the Trump administration, as people view the United States as more hostile and Canadian travelers in particular skip American vacations. Stathokostopoulos said mid-range and lower-tier hotels have especially been hurting as less-wealthy domestic travelers look to save money by taking cruises or booking cheaper short-term rentals on platforms such as Airbnb.
“They have been feeling the pressures of inflation and high costs, and they have been looking for other ways to travel,” he said.
On top of softer demand, hotels have also faced rising costs for labor, insurance and supplies, further cutting into margins.
Two hotels stiffed Berkeley on tax payments
The softer hotel market has financial consequences for Berkeley: The city took in just shy of $7 million from its nightly room tax in the 2024 fiscal year, which was down from $7.5 million the year before and about $1 million less than it made from the tax in 2019.
Finance officials projected revenue from the tax would rise to $7.7 million the 2025 fiscal year, which ended June 30. But as city leaders grappled with a budget deficit this spring, finance staff warned in a report to the City Council that revenue from the “transient occupancy tax” was coming in lower than expected because one of the city’s largest hotels had not paid the tax for the past nine months, and another hadn’t paid in two months.
City spokesperson Seung Lee declined to identify the hotels in response to a Berkeleyside inquiry last month, writing in an email, “We cannot disclose taxpayer information.” Lee said one of the hotels has since paid its outstanding taxes, while the city was “working with” the other on payments, but declined to say whether that was the hotel with nine months of unpaid taxes or two.
Lee said hotel tax revenue figures from the most recent fiscal year were not yet available. The city projects revenue from the tax will stay flat through the middle of 2029.
Fewer ‘peaks and valleys’ in Berkeley’s recovery
Unlike cities that depend on conventions luring big crowds to their hotels, being home to a major university means Berkeley has a more dependable source of visitors. After all, it’s not like scientists headed to Lawrence Berkeley National Laboratory, or the thousands of family members who show up for move-in, graduation and move-out, could decide to go to Las Vegas instead.
“We don’t have as many peaks and valleys,” Church said, meaning that in the wake of the pandemic, “We’ve been able to build back up consistently.”
Although several Berkeley hotels have closed over the past five years, the opening of the downtown Residence Inn has made up for those losses — the city’s total room inventory is up slightly, at 1,514, compared to 1,471 before the pandemic. There are 14 hotels and motels across Berkeley today.
Hospitality experts see reason for the Bay Area to be optimistic about the future. The market got a major boost in January when the NBA All-Star Game was held at Chase Center. Many hope that weekend was a preview of what’s to come next year, when Levi’s Stadium hosts the Super Bowl and World Cup games, which are expected to draw legions of visiting fans to the Bay Area.
The Trump administration’s efforts to slash research funding and target higher education could represent a threat to the academic travel that has insulated Berkeley from upheaval over the past five years. But Church said Visit Berkeley hasn’t seen any sign of that so far.
Instead, the tourism board is leaning into Berkeley’s progressive reputation, with ads that aim to attract queer travelers and visitors from Mexico and Canada. The pitch, in Church’s words: “Berkeley continues to be a welcoming destination for people from all over the world.”
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