Overview: San Diego’s hotel market exhibited variability throughout the week, which is normal for this time of year—especially on an election week—with a modest start that improved significantly as the week progressed. Although San Diego dropped in the rankings, the county still ranked within the top 10 among the Top 25 U.S. Markets and 2nd in the Western competitive set across key performance metrics. However, that was a distant second to Phoenix (78.7%), which hosted the Arizona Fall Festival last week.
- Occupancy: The county’s occupancy rate stood at 70.5%. This essentially matched 2023’s performance for the same week, but this is a win compared to the more substantial YOY decreases observed in other Western competitive markets. (“Flat” is truly the new “up.”)
- Top 3 Markets: Tampa, FL (84.8%), which hosted the Red Bull Flugtag competition, New York (84.3%), and Phoenix (78.7%).
- Local Performance: Mission Valley led with an occupancy rate of 78.7%, followed by UTC at 75.2% and Point Loma – Airport at 74.1%.
- Room Night Demand: A total of 320,600 room nights were sold, about even with the same week in 2023.
- Average Daily Rate (ADR) and Revenue per Available Room (RevPAR): The ADR was $193, and RevPAR was $136, placing San Diego County third in the Western competitive set and within the top 10 among the Top 25 U.S. Markets.
- Group Performance: Group occupancy was 25.7%, a 13.5% decrease. But that should be expected for an election week. Upscale+ properties sold just more than 49,000 room nights, about 8,000 fewer than this time last year.
- Convention Activity: A handful of smaller events were in the convention center last week, contributing about 13,250 room nights to the market.
Forecast Note: We’re within striking distance of reaching our forecast for 17.4M room nights in 2024, but that will hinge on how the rest of November plays out. Regardless, we will be very close to hitting that mark even if things don’t pick up as we get closer to the Thanksgiving holiday. As always, we will keep you posted.
View the complete hotel performance report here.
Leave a Reply