June is demonstrating the promise of summer and pent up leisure demand.
- Last week the county again sold more room nights than previous week totaling over 358,000.
- County occupancy reached 80.0% and the average daily rate was $191.
- San Diego ranked 3rd nationally (behind Oahu 81.4% and Norfolk 80.4%) in occupancy and 1st in the western competitive set, nicely outpacing the next comp market of Los Angeles at 74.9%.
- Weekend occupancy was above 90% in all regions except Downtown, which reached 87% on Saturday.
- The week occupancy pattern was a steep climb from Sunday mostly in the 70s to Saturday night in the 90s.
- With the opening of the group meetings market, group occupancy among luxury/upscale chain properties grew from 4% in the first week of June to about 9% occupancy in each of the last 3 weeks.
- LA is at a similar group occupancy level along with Phoenix, although Phoenix jumped to 15% last week as their leisure heads into low season.
- With schools out, COVID restrictions lifted June 15th, and the U.S. Open happening last week, the pent-up demand is arriving, and the hotels are pricing accordingly.
- San Diego’s $191 ADR ranked 4th highest in U.S. behind Oahu $235, Miami $223, and New York at $200, and again 1st in western region comp set.
- The ADR last week was equal to same week in 2019. The week prior was 3% higher than 2019 levels at $186. While demand is not fully back, the market is having weeks with ADRs higher than 2019 levels, which is great news for revenue.
- La Jolla Coastal and Mission Bay reached highs of $329 and $298 respectively. Downtown averaged $186, a positive sign indicating the strength of the market.
- In addition, San Diego hotel RevPAR was $152, behind Oahu and Miami, and 1st in western region comp set.
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