- This week saw San Diego hotel room-night demand soften to its lowest level since early May 2021, with the county selling a total of 253,857 room nights. This is 22,000 fewer room nights than the week prior and largely reflects seasonal declines in leisure travel. Group and business travel, which helps to bolster room demand during the offseason, has been slower to return and is not expected to reach pre-pandemic levels until late 2023 or early 2024.
- County occupancy was 57.1%, ranking San Diego 12th among the top 25 markets (down five spots from the week before) and fourth in the western competitive set (down one spot), behind Los Angeles (70.0%), Phoenix (65.6%) and Orange County (61.1%). Top markets for the week were Miami, New York and Los Angeles.
- Daily rates averaged $150 for the week, down $16 from the week of Thanksgiving. However, this week’s ADR is up $8 from the same week in 2019.
- San Diego’s ADR ranked eighth among top markets (down two spots from the week before) and fourth in the competitive set (down one spot), below Los Angeles ($179), Orange County ($169) and San Francisco ($160).
- RevPAR fell $24 from $109 to $85 this week, mirroring the trend seen in occupancy and ADR. San Diego ranked ninth in the nation for RevPAR (down three spots from the week before).
- Among upscale properties, group demand nearly doubled from the holiday week, to 16% this week. However, transient occupancy fell to 33%, down from 45% last week. Group and transient ADRs followed suit, with group rising to $219 (from $195) and transient falling to $219 (from $278). Group demand continues to improve but remains roughly half the demand from 2019.
- La Jolla coastal properties continue to lead in ADR, with rates averaging $232 this week, followed by Downtown at $187 and Mission Bay at $183.
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