- As expected after the Labor Day weekend, hotel demand dropped to its lowest level since before Memorial Day, with county hotels selling a total of 314,856 room nights last week. The dip in demand is in line with the trend seen in past years and even slightly ahead of demand for the same week in 2019 when hotels sold 309K RNs, although weaker than 2022 when 336K RNs were sold.
- County occupancy dipped below 70% for the first time since early February, but San Diego’s position in the national rankings actually improved from 7th place the previous week to 6th place last week. All major destinations across the country saw considerable dips in occupancy post-holiday weekend, with the exception of the top 4 performing markets of New York (88.6%), Oahu Island (80.6%), Boston (76.9%) and Denver (76.3%). Overall, San Diego hotels averaged 69.8% occupancy last week primarily due to very weak demand on Monday as guests checked out and occupancy averaged in the low 40s throughout the region.
- Within the City of San Diego, hotels in the I-15 Corridor had the highest average occupancy of 74.0%, followed by Downtown at 72.4% and Mission Valley at 70.7%.
- The convention center hosted a smaller primary event through the week with about 3,000 attendees and 10,600 blocked room nights. In total, Group demand among upscale+ properties throughout the county came to 39,125 RNs sold with an average occupancy of 20.5% and average rates of $268. Group demand and occupancy have been similar to pre-pandemic levels for the last few weeks, but rates remain elevated.
- Rates throughout the county averaged $201, in line with 2022, but more than $50 higher than ADR in 2019. San Diego remains a top performing market in ADR, ranking 4th in the nation last week and 1st in the western competitive set.
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