- After the excitement of the Farmers Insurance Open, leisure hotel demand dropped last week while group & transient demand among upscale+ properties remained consistent compared to the same week in 2019. Overall, hotels sold a total of 303,614 room nights throughout the county, down about 30,000 from the week before and roughly 24,000 fewer than the same week in 2019.
- Weekly occupancy dipped to 67.6%, down 6 points from the previous week but in line with national averages. San Diego remained ranked 5th in the nation and 2nd in the western competitive set, just below Phoenix. The top three markets this week were all in Florida with Miami leading at 77.7%, followed by Tampa at 76.1% and Orlando at 72.0%.
- City of San Diego properties averaged 69.0% for the week with hotels in the I-15 Corridor averaging at 73.1%, UTC hotels at 73.0% and Mission Valley at 71.8%.
- One primary event was wrapping up their stay at the convention center last week with about 17,000 blocked RNs. In total, Groups at upscale+ properties sold 65,728 RNs with an average occupancy of 34.3% for the week, peaking on Tuesday at 47.3%, and an average rate of $290. Compared to the same week in 2019, Group demand was relatively unchanged but average rates remain elevated by $45.
- County ADR was consistent week over week at $188. However, San Diego remains relatively low compared to other western markets, with San Francisco averaging $216 a night, followed by Phoenix at $205, and Los Angeles at $195. Miami and Oahu Island lead the nation at $256 and $250, respectively. That said, the slight dip last week was also apparent during the same week in 2022 before rebounding into February and the Spring season, and does not necessarily signal a weakening in the market.
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