San Diego’s hotel performance was middling last week due to the absence of two conventions that were in town during the same week last year. However, leisure travel remains steady as we head into Spring.
Room Demand
- Countywide, San Diego hotels sold 323,350 room nights, about 15,000 fewer than the same week in 2024.
- Nearly all of this decline (13,840 room nights) is attributed to the absence of two conventions this year—AASA, The School Superintendents Association, and AFCEA International(more details below).
Occupancy
- Average occupancy last week was 71.1%, down 5.0% YoY.
- Market rankings:
- 7th among the top 25 STR markets.
- 3rd in the Western competitive set, behind Phoenix (77.0%) and Los Angeles (71.9%).
- Top 3 U.S. markets: Oahu (87.3%), Miami (87.1%), and Orlando (84.7%).
- Top-performing submarkets:
- UTC (81.8%) and the I-15 Corridor (79.8%) led by wide margins, signaling strong business travel.
- Occupancy in UTC exceeded 90% last Tuesday and Wednesday, a trend that has been increasing in recent months.
Last week, both Phoenix and Los Angeles hosted notable events that likely boosted demand in their respective hotel markets.
Phoenix:
- Scottsdale Arabian Horse Show (February 13–23, 2025):Celebrating its 70th anniversary, this event is recognized as the world’s largest Arabian horse show, attracting numerous participants and spectators.
- Concours in the Hills (February 15, 2025): An annual car show in Fountain Hills featuring over 1,000 collector and high-performance vehicles, drawing car enthusiasts from various regions.
- Travel and Adventure Show (February 15, 2025): Held at the Phoenix Convention Center, this inaugural event showcased numerous vacation options and travel experts, appealing to a wide audience interested in travel planning.
Los Angeles:
- Frieze Los Angeles (February 14–16, 2025): A prominent art fair that attracts galleries, artists, collectors, and art enthusiasts from around the world, significantly impacting local accommodations and tourism.
- Tyler, the Creator Concert (February 14–16, 2025): The artist performed multiple shows at Crypto.com Arena, drawing fans from both local and distant areas.
Average Daily Rate (ADR)
- San Diego hotels held steady on rates, with ADR averaging $209, up 1.4% YoY.
- This increase is modest but notable given weaker overall demand compared to 2024.
Group & Convention Activity
- The absence of AASA and AFCEA International last week resulted in nearly 14,000 fewer room nights, accounting for most of the YoY decline.
- One major event moved into the Convention Center last week, contributing 5,800 room nights.
- This event will continue into this week, adding an expected 17,500 additional room nights, which will be reflected in next week’s update.
- Non-SDCC group meetings added 9,800 room nights, with demand concentrated in UTC and the I-15 Corridor.
- Total Group Performance:
- 60,224 Group room nights sold at upscale+ properties last week.
- ADR for those bookings averaged $301 per night.
View the complete hotel performance report here.
Leave a Reply