- Hotel demand has softened slightly over the last few weeks with county hotels selling a total of 329,733 room nights last week, down from 344K two weeks prior. When looking at demand among just upscale+ properties, last week’s performance was identical to the same week in 2022 and 2019. However, after a strong January and February, total market demand has fallen 126K RNs short of 2019 and 81,000 RNs short of 2022 since the first week in March, implying that economy and midscale leisure demand has softened in recent weeks. It’s yet to be seen whether this trend is being driven by weather or economic/financial concerns but has prompted a slight downgrade to the forecast for RNs in 2023.
- Hotel occupancy fell by 2.4 points to average 73.4% last week, though San Diego’s national ranking was unchanged at 7th place. Orange County and Los Angeles averaged slightly higher at 75.2% and 74.0%, respectively. The top three markets for the week were New York (85.1%), Oahu Island (80.2%) and Nashville (76.5%).
- Mission Valley hotels had the highest average occupancy within the City of San Diego at 77.9%, followed by Pt. Loma/Airport properties at 76.4% and UTC at 76.1%.
- One larger event moved into the convention center beginning May 1, which produced 14,630 blocked room nights through the 6th. Overall, Group demand at upscale+ properties came to 64,173 RNs with an average occupancy of 33.7%, peaking on Friday at 41.6% and an average rate of $295. Last week’s Group demand mirrored what it was during the same week of 2019, but with rates still $40 higher.
- San Diego rates continue to stay in step with other California destinations with last week’s ADR rising w/w to $209, sandwiched between Orange County at $211 and San Francisco at $208. Los Angeles was slightly ahead at $216.
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