Weekly Hotel Performance Update – July 7-13, 2024

• Hotel performance hit a snag last week, uncharacteristically moving slightly lower week-over-week and down considerably from previous years. Some, but not all, of this is attributable to ESRI entering the market later than last year, making year-over-year comparisons a bit more difficult. The drop in performance also appeared to be broad-based across the nation and not isolated to just San Diego. The next several weeks will determine whether this was just a case of travelers hitting the pause button after a strong 4^th of July or if it represents a broader, more sustained trend.
• County properties sold 358,427 room nights, about 5,000 fewer than the week prior and some 61,000 fewer than the same week in 2023.
• Occupancy edged lower to 79.2% from 80.3% the week prior and down significantly from the 93.2% registered during the same week last year.
  • Despite the relative weakness, the drop in performance wasn’t isolated to San Diego. As a result, San Diego ranked a still-respectable 5^th among the top 25 markets and 2^nd among the western comp set behind Seattle (84.0%). The top three markets last week were Oahu (89.2%), New York (85.8%), and Boston (84.3%).
  • Within the city, I-15 Corridor properties fared best, averaging 85.1% occupancy last week, followed by Pt. Loma – Airport hotels (84.3%) and UTC (83.1%).
  • The weekly average masks a fairly decent weekend. Occupancy in all regions across the county was above 85% on Friday night and above 90% on Saturday.
• Similar to room demand, ADR edged $7 lower to $238 last week, nearly $40 less than last year. Like occupancy, however, this was still the 4^th highest nationally and higher than the other western markets.
• As mentioned above, ESRI had just started moving into the convention center late last week and contributed only a little more than 2,000 room nights. For comparison, ESRI contributed more than 25,000 room nights during the week last year; we can expect the convention to add about the same number of room nights in next week’s report. Altogether, upscale+ properties sold 27,750 Group room nights, nearly 30,000 fewer than last year.

View the complete hotel performance report here.