- Hotel demand was uneven for the week leading up to the Labor Day holiday. Hotel occupancy softened during the week followed by a spike in demand on Friday and Saturday. County hotels sold a total of 329,120 room nights, down about 14,000 from the week prior and 22,500 fewer than the same week in 2019. The drop in demand compared to 2019 is attributable almost entirely to fewer leisure room nights, a sign that leisure travel to the region is being adversely affected by persistently high inflation, recession worries, and the wringing out of pent-up demand in the market.
- County occupancy averaged 73.1% for the week, dropping San Diego to 6th nationally and just below Seattle (74.0%) in the western competitive set. The top three markets this week were New York (81.2%), Boston (79.2%), and Oahu Island (75.9%).
- Properties located Downtown had the highest average occupancy for the week at 80.5%, aided by two events hosted at the convention center.
- Occupancy reached 94.5% on Saturday night throughout the county, with Mission Valley properties peaking at 96.9% for the night.
- Yardi Systems, Inc and Jack Henry & Associates held events at the convention center for a total of 18,538 blocked room nights during the week. Group occupancy averaged 23.2% for the week, peaking on Tuesday at 35.1%, with a total of 43,270 RNs sold among upscale+ properties and an average rate of $250. Properties sold 5,000 more Group RNs than the same weeks of 2019 and 2021 with an ADR about $20 higher than those years.
- Transient demand among upscale+ properties was 87,422 RNs for the week with an average occupancy of 47.0% and ADR of $332. Last week’s demand fell in between that of the same weeks in 2019 and 2021, but ADR remains about $100 higher than 2019 and $35 higher than 2021.
- Total market ADR rose from the previous week with help of the holiday weekend. Rates averaged $222 throughout the county ranking San Diego 4th in the nation and 1st in the west.
- RevPAR was flat week-over-week at $163 as the increase in ADR was offset by lower occupancy.
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