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Study: SF Cleaning Ordinance To Cost Hotels $47 Million

July 8, 2020


SAN FRANCISCO — The San Francisco Board of Supervisors’ Healthy Buildings ordinance will cost San Francisco’s 215 hotels $220,000 each adding more than $47 million in annual industry costs, extending hotel closures and extending joblessness for 15,000 employees, according to an independent analysis of the ordinance’s cleaning mandates.

Hotel Asset Value Enhancement calculated costs per occupied room of the incremental cleaning and operating requirements such as labor, materials and laundry, unique to the proposed ordinance concluding they would cost the average sized hotel of 250 rooms $220,000 annually to be in compliance. The study assumed an occupancy rate of 63 percent, which is in line with the CBRE forecast for 2021.

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