Hotels in San Francisco are the priciest in the world

Los Angeles

SAN Francisco already is one of the priciest US cities for apartment renters and companies seeking office space. Now the area has a new distinction: it's the world's most expensive place for visitors to spend the night.

The average price for a San Francisco hotel room has jumped 88 per cent in the past year to US$397 a night, according to an index compiled by Bloomberg of the world's top 100 financial centres. The city ranks ahead of Geneva, where rooms set travellers back US$292 a night, and Milan, at US$271. Chicago, with rates at US$240, ties with Miami as the second-costliest US cities.

The surge in San Francisco room rates was the biggest among the lodging markets tracked by Bloomberg. The rising costs are being driven by the region's technology-industry boom, a soaring job market and a dearth of hotel construction as developers focus on office and residen…