- Hotel demand has slowed considerably with the number of room nights sold dropping below 2019/2021 levels for the last two weeks. While most other markets across the country have also experienced similar drops in demand, San Diego has slipped in the national rankings in both occupancy and average rates week over week. However, this may not necessarily mean a dip in total tourism in the region; data has shown more visitors choosing to stay with friends and relatives or in short-term rentals during the November/December holiday stretch (those stays are not included in the STR data). Visitor profile data will shed light on whether the recent lull represents a true drop in total demand or a change in preferences among visitors.
- County hotels sold a total of 258,158 RNs last week, roughly the same as the previous week but about 13,000 fewer than during the same week in recent years. County occupancy averaged 57.5% for the week ranking San Diego 16th (down sharply from 9th) among the top 25 markets. The top three markets in the nation were Miami (80.4%), New York (77.9%) and Phoenix (68.6%). Notably, occupancy in Miami and New York was far ahead of the national average of 61.2% while 14 of the Top 25 fell below 60% last week.
- Occupancy along the coast has dropped along with the temperatures with Mission Bay averaging 37.2%, La Jolla Coastal averaging 47.4%, and Del Mar/Oceanside at 49.3%. All other regions in the county averaged mid-50s to low-60s.
- The convention center hosted two smaller primary events during the week with about 9,000 blocked room nights. Overall, Group occupancy among upscale+ properties averaged 18.2% for the week, as expected for this time of year, with rates averaging $247.
- Average rates continue to decline as demand slows with county ADR at $171 last week, about the same as this time last year and a little more than $20 above 2019. Other California markets saw slightly higher rates last week, ranging from $181 in Los Angeles to $188 in Orange County.
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