The Phoenix Hotel, a legendary establishment in San Francisco that has welcomed music icons such as David Bowie and Kurt Cobain, will shutter at the close of 2025.

Since opening in 1987, the 44-room hotel in the heart of the Tenderloin has earned a reputation as the go-to spot for touring musicians and artists. 

Famed for its vintage aesthetic, vibrant neon signs, and lush courtyard enveloping a central swimming pool, the Phoenix became a preferred lodging spot for bands like the Red Hot Chili Peppers, Pearl Jam, and Neil Young.

Nirvana frontman Kurt Cobain was so fond of the hotel that a piece of Phoenix Hotel stationery was found in his wallet after his death.

Anthony Kiedis, the lead singer of the Red Hot Chili Peppers, was so enamored with the hotel that he described it as ‘the most sexually, intellectually, and culturally stimulating hotel in San Francisco.’

The iconic hotel was founded by Chip Conley, then just 26, who transformed the former Caravan Lodge into what became San Francisco’s first true rock-and-roll hotel. 

Conley, who later founded Joie de Vivre Hospitality, tailored the Phoenix specifically for bands on tour – offering free bus parking, discreet accommodations and services for road-weary crews.

The Phoenix also helped usher in a wave of boutique hotels and remained a landmark in a neighborhood more known for its difficulties than its hospitality.

Conley told the San Francisco Chronicle the hotel had been operating at a loss since the pandemic, and with the Tenderloin’s persistent street challenges and the city’s struggling hospitality sector, profitability was unlikely to return.

For nearly five years, the Tenderloin neighborhood has faced a severe drug crisis, with drug-related incidents consistently more than double those reported in the city’s second hardest-hit area, the San Francisco Standard reported.

‘To be quite honest, it’s not even just the lease terms, it’s the nature of the neighborhood,’ Conley said. ‘We have come to a place where after 39 years – and I am turning 65 later this year – maybe it’s time for the Phoenix to retire.’

He added that while there is ‘some hope and belief’ that the neighborhood will improve, he hasn’t seen much progress since the pandemic.

‘Maybe if I had been smart, I would have bought the land a long time ago, but, at the end of the day, sometimes you have to say, ‘It’s been a beautiful experience and it’s time for it to have its fat lady sings opera moment,’ he said.

The decision to close follows the San Francisco Baking Institute’s purchase of the property for $9.1 million nine months ago. 

Conley said his team had ‘cordial negotiations’ with Michel Suas, the French pastry chef who leads the institute, about extending the lease, but ultimately decided against it.

The Phoenix will stay open through the end of 2025 and close permanently on January 1, 2026. The new owners have not announced future plans for the site, and Conley said he doesn’t yet know what will become of the building.

Despite the looming closure, the hotel will mark its final year with a full calendar of events, including Pride weekend pool parties, live music nights and a Halloween send-off – all part of a farewell celebration honoring its legacy.

While Conley hasn’t ruled out licensing the Phoenix name and intellectual property for future use, the original hotel’s closure signals the end of a unique chapter in San Francisco’s history.