- San Diego hotel demand declined for the second week in a row as the summer leisure travel season begins to slow. County hotels sold a total of 356,135 room nights this last week, roughly equal to the number of RNs sold in the same week of 2021 but 24,000 RNs less than in 2019. Nearly all of the decline from 2019 can be attributed to the leisure market, which has carried San Diego’s Tourism recovery for the past year. This segment bears close watching in coming weeks as travelers grapple with persistently high inflation, volatile financial markets, rising interest rates and recession fears.
- Total market occupancy averaged 79.1% last week ranking San Diego 5th in the nation (down from 3rd the week prior) and 2nd in the western competitive set (unchanged). The top three markets during this week were Seattle (83.2%), Oahu Island (81.8%) and Norfolk/Virginia Beach (80.1%).
- La Jolla Coastal properties averaged the highest occupancy for the week at 84.0% followed by properties Downtown at 81.9%. Other regions in the county ranged from mid-70s to 80%.
- The convention center hosted one event last week, Buffini & Company, for a total of 3,072 blocked room nights. Upscale+ properties sold a total of 43,877 group RNs with an average occupancy of 23.6% and ADR of $280. This is about 3,000 more RNs sold than the same week of 2019 with average rates about $36 higher.
- Transient demand among upscale+ properties came in about 5,000 RNs lower than in the same week of 2019 and 2021, for a total of 99,007 RNs sold last week. However, at $357, ADR remains about $100 higher than 2019 and $30 higher than 2021.
- More broadly, market-wide ADR averaged $237 for the week, down $8 from the previous week but still $51 above 2019 levels for the same week. San Diego ranked 3rd among top markets and 1st among western cities in ADR.
- RevPAR followed ADR and occupancy lower from the previous week, but San Diego remains a top performer. RevPAR averaged $187 for the week, ranking San Diego 3rd in the nation.
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