- Room night demand throughout San Diego County rose from the previous week by 20,000 room nights to a total of 297,544 RNs sold last week. When compared to the same week in 2019, total market demand was about 10,000 RNs weaker, but Group and Transient demand among upscale+ properties was up by about 4,000 from 2019, implying slightly softer leisure demand thus far in 2023.
- Economic uncertainty and persistent inflation have led to recession fears, sparking an expected slowdown in leisure demand in the first half of 2023 before rebounding again later in the year.
- County occupancy averaged 66.3% for the week ranking San Diego 7th among top markets and 2nd in the western competitive set behind Phoenix at 73.1%. The top three markets for the week were Oahu Island at 79.0%, Tampa at 78.8% and Miami at 75.9%.
- Within the city of San Diego, Mission Valley had the highest occupancy at 74.6%, followed by UTC at 70.4% and Pt. Loma/Airport at 69.8%
- Despite no primary event being held at the convention center last week, Group occupancy was strong at 30.7% peaking on Thursday at 40.9%. Overall, Group demand totaled 57,935 RNs sold, about 2,000 more RNs sold than the same week of 2019, with an average rate of $264, up $40 over 2019.
- County ADR inched upwards by about $5 from the week prior to settle at $178 last week. Average rates remain about $30 higher than both 2019 and 2022, but San Diego continues to rank lower than usual in both the top 25 markets and the western competitive set.
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