- Hotel room night demand in San Diego County was relatively unchanged week over week, with hotels selling a total of 345,216 RNs last week. Group demand waned last week compared to past years, but Transient demand among upscale+ properties helped make up the difference.
- County occupancy dipped ever so slightly w/w, down 0.4 points to settle at 76.8% last week. However, San Diego rose significantly in the national rankings, from 9th the week prior up to 5th, and rose to 1st in the western competitive set. The top markets in the nation were New York at 82.2%, Tampa at 80.5% and Oahu Island at 77.6%.
- Mission Valley properties had the highest average occupancy rate within the City of San Diego, at 83.1% followed UTC at 79.5% and Downtown at 78.5%.
- The convention center hosted one smaller primary event during the week with 2,030 blocked room nights, while another small event began to move in at the end of the week. Overall, Group demand at upscale+ hotels came to roughly 34,500 RNs sold, about 24,000 fewer RNs sold than the same week in either 2019 or 2022. The temporary lull in convention center events forced Group occupancy to its lowest average since the first week of 2023, at 18.1% (compared to 31.5% last year) with an ADR of $261.
- Conversely, Transient demand among upscale+ hotels rose to a new high for 2023, selling nearly 101,000 RNs last week, about 11,000 more RNs sold than both the week prior and the same week in 2022. This helped to equalize overall demand at upscale+ properties to past years’ demand.
- County rates cooled a bit to average $200 last week, essentially matching rates for the same week in 2022 and keeping in line with other California markets. Orange County led the west at $207, followed by San Diego ($200), Los Angeles ($191) and San Francisco ($188).
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