Hotel Performance Update: A Steady Start to 2025
As the holiday season fades and 2025 begins, San Diego’s hotel market is off to a decent start. While the winter season typically brings weaker demand and a seasonal dip in rankings compared to the peak summer months, the first two weeks of January have performed at or above the same weeks in 2024, when back-to-back atmospheric rivers dampened demand. San Diego has secured a spot in the Top 10 among the Top 25 U.S. Markets for key metrics like Occupancy, ADR, and RevPAR—a typical and expected position during January as destinations in Florida and Hawaii enjoy their winter rush.
Weekly Highlights:
- Occupancy: San Diego achieved 59.7% occupancy last week (+1.2% YOY), ranking 9th among the Top 25 U.S. Markets and 4th in the western competitive set.
- Top 3 Markets: Tampa (79.1%), Miami (72.8%), and Oahu (72.2%).
- Top Submarkets: Downtown led with 62.9%, followed by UTC (62.4%) and La Jolla (61.2%).
- Room Nights Sold: A total of 271,812 room nights were sold, an increase of about 5,000 compared to the same week in 2024.
- Average Daily Rate (ADR): ADR held steady at $179 (+3.3% YOY), with San Diego ranking 8th in this category.
- Revenue Per Available Room (RevPAR): RevPAR reached $107, securing the county the 8th spot among the Top 25 markets.
Group Performance:
- Group & Transient Occupancy:
- Group occupancy at upscale+ properties was 23.1% (-11.2% YOY), with ADR rising to $273 (+7%).
- Transient occupancy at upscale+ properties registered 33.5%, a strong 14.2% YOY increase.
- Luxury Room Nights: 44,173 upscale+ room nights were sold, staying on par with 2024 levels.
Convention Impact: San Diego’s Convention Center hosted a smaller primary event, SAP American, Inc., last week, generating about 11,000 room nights.
View the complete hotel performance report here.
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