San Diego’s hotel market lost momentum last week, with some of the decline due to shifts in the convention calendar. The absence of the American Academy of Dermatology, which generated about 18,000 room nights during the same week last year, contributed to the drop. Including hotel meetings and non-SDCC events, the market lost approximately 14,000 room nights year-over-year.
However, the decline wasn’t limited to group and meeting business. Overall room demand fell by more than 55,000 room nights compared to the same week in 2024, signaling softness in leisure travel as well.
Looking ahead, the American Academy of Orthopaedic Surgeons is in town this week, which should boost next week’s report. However, peak room demand for the event has been revised down from 10,000 to 7,500, limiting the potential impact. Spring Break travel will also be a key factor to watch.
Next week, we’ll get a full look at February’s numbers, but early data suggests a 15,000 room-night deficit compared to 2024, eroding some of the 80,000 additional room nights generated in January versus 2024. Including last week’s drop, we’re more or less even with 2024 STLY. This is likely to impact the April lodging forecast, which will be available in the next few weeks.
Overall Market Performance
- Occupancy Rate:65.7% (▼ 16.2% YoY)
- National Ranking: 14th among the Top 25 U.S. Markets
- Western Competitive Set: 4th place
- Average Daily Rate (ADR):$194 (▼ $20 / -10% YoY)
- Rates softened due to lower compression.
- Revenue per Available Room (RevPAR): $127
- Room Nights Sold: 297,639 (▼ 55,385 YoY)
Top-Performing Submarkets
- Point Loma: 71.2% occupancy
- UTC: 70.6% occupancy
- I-15 Corridor: 68.5% occupancy
- Performance varied across the region.
- Mission Bay had a strong weekend, posting 84% occupancy on Saturday.
- UTC and the I-15 Corridor saw solid midweek demand from business travelers.
- Other areas experienced weaker demand throughout the week.
Top U.S. Markets
- Tampa, FL: 86.5%
- Phoenix, AZ: 84.6%
- Miami, FL: 82.6%
Group Performance at Upscale+ Properties
- Group Occupancy: 27.1% (▼ 25.9% YoY)
- Group ADR: $298
- Group RevPAR: $81
Meetings & Conventions (M&C) Activity
- Conventions Held:
- American Academy of Allergy, Asthma & Immunology (2,809 room nights)
- American Academy of Orthopaedic Surgeons (1,660 room nights through Saturday; full event runs through March 14)
Total Room Nights Sold:4,469 (SDCC) + 9,290 (Non-SDCC)
View the complete hotel performance report here.
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