- Despite the historic number of road-tripping travelers predicted by AAA and air travelers recorded by TSA, San Diego hotels did not see an uptick in occupancy as anticipated for the Thanksgiving holiday. In fact, last week had the weakest hotel demand since the Omicron wave at the beginning of 2022. That said, however, this trend was seen across many of the Top 25 markets tracked by STR.
- County hotels sold a total of 258,761 room nights through the week with much of the demand falling on Thursday and Friday night. Compared to past Thanksgiving weeks of 2019 and 2021, room night demand fell short by about 15,000 RNs this year. As a result, hotel occupancy averaged 57.6% last week. San Diego was not the only market to see a dramatic drop in week-over-week occupancy, however, as the county ranking actually rose from 9th in the nation the previous week to 7th this last week. The top three markets for the week were New York (72.1%), Oahu Island (70.2%), and Orange County (64.4%).
- Most regions throughout San Diego had average occupancy in the low-to-mid 50s. Mission Valley properties had the highest occupancy in the City of San Diego at 61.3%.
- As is typical for the holiday week, Group occupancy among upscale+ properties fell to 5.9% with an average rate of $186. Interestingly, however, transient occupancy actually rose from the previous week to 41.6% with rates at $267.
- County ADR fell to its lowest level since early 2022, dropping to $179 for the week. Other California markets also experienced large drops in rates for the holiday week, with Los Angeles down to $182, Orange County at $176 and San Francisco at $163.
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