- Hotel performance was mixed and somewhat uneven last week due to Citywide calendar shifts and some changes in market preferences for leisure travelers. Leisure demand increased year-over-year, but only amid a decline in ADR, while Group came in quite a bit softer than in 2023 (details below).
- County properties sold 361,781 room nights last week, about 12,500 fewer than the same week in 2023. This was influenced by the Avid Center convention, which occurred a week earlier this year than in 2023. That accounts for about 13,000 of the year-over-year decline in Group.
- County occupancy decreased almost 2 percentage points to 79.8% last week from 81.7% the previous week. However, a sharp decline in occupancy in other markets, including San Francisco, allowed San Diego to rise to 4th place (from 6th the prior week) among the top 25 markets and 2nd in the western competitive set behind Seattle (84.9%).
- The top 3 markets last week were Oahu (85.2%), Seattle (84.9%), and New York (82.8%).
- Occupancy in the city averaged 80.1% last week; the top three subregions were Mission Bay (84.2%), Pt. Loma – Airport (81.6%), and Downtown (80.4%). However, despite the slight dip in occupancy across the week as a whole, demand surged over the weekend, with every submarket posting occupancies above 90% on Saturday night.
- Leisure occupancy averaged 54.4% last week, a significant 15.6% increase over 2023 alongside a 9.6% year-over-year decrease in ADR.
- Our OTA partners suggest that travelers are focusing on deals and promotions as they become more price-conscious, possibly contributing to this dynamic.
- Zooming out to the entire market, ADR remained stable week-over-week at $221 but about $13 cheaper than in 2023, reinforcing the notion that leisure travelers are seeking bargains.
- The convention center hosted the Drug Information Association, generating about 17,700 room nights. However, upscale+ properties sold 38,694 room nights, down by more than 20,000 compared to 2023.
- This implies that leisure visitors booked about 7,500 to 8,000 more room nights last week than they did in 2023.
- Group occupancy averaged 21.2% last week, down from 31.1% last year. Again, though, this decrease is primarily due to citywide calendar fluctuations.
- Group ADR averaged $310, a 7.1% year-over-year increase.
View the complete hotel performance report here.
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