Bloomberg has designated San Francisco the priciest city in the world for travelers, with the average hotel room price jumping 88 percent in the past year, reaching $397 per night.
That’s more than $100 above the average hotel room price in the second-most expensive city, according to Bloomberg’s index of the world’s top 100 financial centers.
The No. 2 and No. 3 spots went to Geneva, Switzerland ($292 per night), and Milan, Italy ($271). The next-most expensive U.S. cities on Bloomberg’s list were Chicago and Miami ($240 per night), which tied for No. 7 and were immediately followed by Los Angeles ($237).
The Bloomberg index measured the 100 cities based on their average daily hotel cost, regardless of star ratings, for two adults in a double-occupancy room.
Bloomberg cites the San Francisco area’s booming technology industry as a catalyst for the city’s booming hotel rates. Not only does the city have the priciest room rates among the 100 areas that Bloomberg examined, but its room rates also saw the biggest year-over-year increase.
The general manager of the San Francisco Marriott Marquis hotel, Chuck Pacioni, tells Bloomberg:
“The influx of tech companies into San Francisco has been tremendous, and with it this new emerging traveler, this millennial traveler, who is looking for downtown experiences. Many of them may travel for work to Silicon Valley, but instead of staying at a suburban hotel, they want to stay in the city for the culture and the experiences.”
This is not the first time San Francisco has been noted for its high cost of living.
This spring, Forbes declared San Francisco the worst U.S. city for renters, who pay an average monthly apartment rent of $2,802.
The same month, real estate website Trulia deemed the California city the hottest U.S. housing market, with a median asking price of $1.1 million.
Have you traveled to San Francisco recently? Do you think the city is worth $397 a night? Let us know your thoughts in a comment below or on our Facebook page.