- Hotel demand in San Diego maintained its seasonal path last week as summer draws to a close. County hotels sold a total of 350,673 room nights, more than 20,000 RNs higher than in 2021 but roughly 18,000 fewer RNs than the same week in 2019. The difference in RNs compared with 2019 is attributable in large part to a decrease of 14,000 RNs within the leisure market. This is the second week in which leisure demand has fallen measurably short of 2019 levels, and this segment bears close watch in coming weeks as travelers grapple with a number of economic and financial concerns.
- Like room night demand, ADR is cooling off after a red-hot, record-setting summer. ADR for the week was $228, down $9 from the previous week, but still $20 above 2021 and $51 above 2019. San Diego remains 3rd in the nation for ADR, behind Oahu Island at $286 and New York at $240.
- Total market occupancy averaged 77.9% for the week, down 1.2 points from the week prior, ranking San Diego 4th in the nation (up from 5th) and 2nd in the western competitive set (unchanged), neck-and-neck with Seattle at 77.9%. The top 3 markets this week were Oahu Island, Denver, and Seattle.
- The regions with the highest occupancy for the week were UTC at 81.1%, followed by Downtown at 80.8% and La Jolla Coastal at 80.2%.
- The convention center hosted the Global Business Travel Association from Aug 14-17 with a total of 17,030 blocked room nights. In total, upscale+ properties sold 39,399 group RNs resulting in a 21.2% group occupancy for the week peaking on Tuesday at 29.8%. Group ADR was $299 for the week. Compared to the same week in 2019, group demand was only down by about 3,000 RNs while ADR was $60 higher.
- Transient demand among upscale+ properties was constant week-over-week and mirrored that of recent years. A total of 99,029 transient RNs were sold resulting in a 53.2% occupancy with $329 ADR. Transient RNs were roughly on par with 2019 levels for the same week while transient ADR remains more than $75 higher than in 2019.
- RevPAR reduced by $10 last week, but San Diego remains the 3rd top market among top 25 markets at $177.
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