- Poor weather conditions continue to work against San Diego leisure demand. Despite ticking up slightly to 326,051 total room nights sold last week, the trend in demand remains softer than in prior years. Last week’s demand was about 40,000 RNs weaker than in 2019 and 2022, causing San Diego to drop considerably in the national rankings.
- County occupancy averaged 72.3% for the week, an improvement from the previous week but far below the top destinations of New York at 89.2%, Seattle at 88.1% and Boston at 86.0%. San Diego ranked 14th among the top 25 markets and 5th in the western competitive set, marking a significant departure from July’s stellar performance.
- Hotels in the UTC region had the highest occupancy with the City of San Diego at 79.2%, followed by La Jolla Coastal properties at 77.1% and I-15 Corridor hotels at 76.5%.
- The convention center had a few smaller events move in and out throughout the week, contributing about 7,700 room nights. Group demand among upscale+ hotels throughout the region totaled 57,794, a nice bump from the previous week but still fewer than in 2022. Group demand has fallen short of 2022 levels for four weeks in a row. All told, Group occupancy averaged 30.2% with rates of $286 last week.
- As demand is softening, so too are average rates. County ADR dipped below $200 for the first time since May, settling at $199 last week and about $15 lower than the rates registered during the same week last year.
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