- 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.
View the complete hotel performance report here.