Despite mounting concerns over the impacts of federal policy and rhetoric, San Diego’s hotel market continues to push ahead with no immediate signs of weakness. However, there are two caveats worth mentioning:
- M&C activity contributed nearly 30,000 room nights to the market, but with the total market up just 12,000 room nights compared to last year, that implies a year-over-year decrease of about 18,000 room nights in other segments, including leisure.
- Reports of cancellations are starting to enter the market as international travelers rethink their travel plans to the U.S. Signs point to these changes affecting both the leisure and business markets. Further, from a purely M&C standpoint, Federal Contract business has been a bit soft, and other business groups in certain sectors are beginning to cancel or downsize their event plans. While the impacts are yet to show up in the data, this is something that will be tracked closely as future reports are released.
Overall Market Performance:
- Occupancy: 78.2% (+3.3% YoY), ranking 4th among the Top 25 U.S. Markets and 2nd in the Western Competitive Set.
- ADR: $209 (+7.5% YoY)
- RevPAR: $163
- Room Nights Sold: 354,530 (+12,000 YoY)
Top-Performing Submarkets:
- Downtown (85.1%)
- Pt. Loma (83.0%)
- UTC (82.6%)
- Strong midweek spikes across these areas, reflecting a good week for Group business and hotel meetings
Top U.S. Markets:
- Tampa (90.2%)
- Miami (88%)
- Phoenix (86.3%)
Group Performance at upscale+ properties:
- Group Occupancy: 40.4% (+32.7% YoY)
- Group ADR: $293 (+5.5% YoY)
- Group RevPAR: $118
SDTA-Affiliated M&C Activity:
- Major conventions: Diversified Communications & American Academy of Allergy, Asthma & Immunology
Room Nights Sold: 29,768 (15,215 SDCC + 14,553 non-SDCC)
View the complete hotel performance report here.
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