- As temperatures have fallen in San Diego County, so too has hotel room night demand, especially in the coastal regions. Room night demand dipped to 309,466 sold throughout the county last week, a decline of nearly 30,000 RNs from the week prior. However, this drop in demand is typical for this time of year, and despite last week’s lull, demand was still about 20,000 RNs higher than the same week in 2019 and 30,000 more than 2021.
- County occupancy averaged 68.8% for the week, the first sub-70% weekly reading since early 2022. San Diego fell to the middle of the pack among the top 25 markets as competitive pressures heat back up, ranking 10th nationally (down from 9th the previous week). The top three markets for the week were New York (82.0%), Phoenix (76.1%), and Miami (74.8%).
- Coastal regions of Del Mar/Oceanside, La Jolla, and Mission Bay had average occupancy from the mid-50s to low 60s, while the rest of the county averaged low-to-mid 70s.
- The convention center had two smaller events during the week with roughly 10,000 blocked RNs. All counted, San Diego had 58,872 Group RNs sold throughout the county at an average rate of $254, well ahead of the 45K RNs sold during the same week in 2019 at a rate of $237.
- Transient demand among upscale+ properties was down about 4,000 RNs from the week prior. Transient ADR is also on a downward slope, having slipped from $330 a few weeks ago to $270 this last week. However, this downward trend is typical for this time of year.
- County ADR was below $200 for the first time since May, falling by $12 to average $190 last week. Compared to 2019 and 2021, average rates remain $30-40 higher than historic norms. Other California markets also saw decreases in rates last week, with Orange County falling the most, by more than $30 week-over-week, to average $170.
Leave a Reply