San Francisco’s soaring rental costs and surging job market have pushed the city to a new level. According to a Bloomberg report, San Francisco now has the most expensive hotel rates in the world. The average price for a night jumped from last year by 88 percent to $397—the largest increase among 100 of the world’s top financial centers.

The report suggests that a shortage in hotel construction, along with an influx of tech companies, have been driving factors behind rising hotel rates. In the past four years, the city’s population jumped by 5.9 percent; the average statewide population gain stands at 4.2 percent.

As a result, developers are focused on creating more office and residential space. San Francisco is predicted to overtake Manhattan as the costliest office rental market by the end of the year. Demand for apartment rentals is also at an all-time high, with prices averaging at $2,280.

The low inventory of new hotels, has allowed operators to post higher rates. The city’s room count grew by only 0.3 percent in the first five months of this year, compared to a 3 percent increase in New York. High staffing costs are also associated with operating San Francisco hotels.

According the data, San Francisco pulls ahead of Geneva, where rooms cost about $292 a night. The third costliest city is Milan, at $271. Chicago and Miami tied as the second priciest U.S. cities, with going rates at $240. New York, on the other hand, reported the largest decrease among U.S. cities. Room rates in New York dropped by 13 percent to an average of $202.

European cities also report big declines. Paris hotel rates dropped by 37 percent to $146 a night, and Budapest prices fell by more than half to $85. But the cheapest city to rent a hotel remains Hanoi, Vietnam, where rooms average $62 per night.