San Diego closed out May on a strong note, rebounding from some softness in March and April. While the opening of the Gaylord Pacific complicates year-over-year comparisons for the broader market, performance within the City of San Diego clearly outpaced last year. Room night production within the city rose by 28,321 year-over-year, totaling 220,977 in 2025 compared to 192,656 in 2024. Occupancy within city limits averaged 79.1%, a significant increase from 69.3% during the same week in 2024, representing a 14.1% gain. A couple of large conventions drove the increase (see below).
Memorial Day weekend: Last week’s report provided a clear snapshot of holiday demand, and it did not disappoint. From Friday through Sunday, countywide occupancy averaged 87.6%, closely mirroring the rate seen in 2024. The region sold 4,431 more room nights than last year, a gain largely driven by the addition of the Gaylord Pacific. Still, stripping away the “Gaylord Effect,” performance within the city remained strong and consistent with last year’s solid showing, a positive bellwether heading into the summer season.
Occupancy peaked on Saturday night across the city, ranging from a “low” of 95% in La Jolla to a high of 99% along the I-15 Corridor. One notable trend was a 3.9% year-over-year decline in ADR over the holiday weekend, falling to $226.23 from $235.50. However, ADR for the full week edged up slightly, indicating that hotels are still maintaining rate strength while increasing occupancy.
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San Diego Hotel Performance: May 25–31, 2025
- 351,324 room nights were sold, marking a year-over-year increase of 33,839 room nights.
- The market achieved an average occupancy of 75.5%, up 7.6% YoY, ranking 2nd among the top 25 U.S. markets and 1st in the western region.
- Top-performing U.S. markets included New York (84.9%), San Diego (75.5%), and Oahu Island (75.1%).
- Within San Diego, the highest submarket occupancy rates were recorded in Downtown (84.7%), Mission Valley (79.3%), and Point Loma (77.0%).
- Average Daily Rate (ADR) reached $203, a 2.3% increase YoY, while Revenue Per Available Room (RevPAR) rose 10.1% YoY to $153.
- Upscale+ properties reported 47,321 group room nights sold, a 16,720-room increase YoY, with an ADR of $279 (–0.9% YoY) and RevPAR of $63 (+34.0% YoY).
- The San Diego Convention Center hosted two major events—NAFSA and Competitor Group—contributing 25,297 room nights to the market.
View the complete hotel performance report here.
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