San Diego concluded 2024 on a high note, cementing its position as one of the top-performing hospitality markets in the country and Best in the West for hotel occupancy rate. According to the latest STR report, the county ranked third among the Top 25 U.S. markets for hotel occupancy over the course of 2024, reaching 74.3%—a 1.1% increase year-over-year. Only Oahu Island (79.8%) and New York (84.3%) posted higher occupancy rates, while San Diego finished ahead of key competitors like Los Angeles (71.8%) and Orange County (71.6%) for a second consecutive year.
One of the standout achievements of the year was surpassing the April 2024 forecast of 17.4 million room nights sold. With 17.5 million actualized room nights, the market exceeded expectations by approximately 80,000. Downtown San Diego led the way with 4.1 million booked room nights, while the UTC area boasted the highest occupancy rate at 77.3%.
Growth in Key Performance Metrics
San Diego’s hotel industry saw steady yet modest gains in 2024. The average daily rate (ADR) climbed 1.3% year-over-year to $213, while revenue per available room (RevPAR) increased by 2.4% to $158. Group travel also played a pivotal role, with upscale+ properties recording a 26.2% group occupancy rate—up 1.5% from the previous year. Total group room nights reached 2.6 million, with a group ADR of $287 (+3.4%) and a RevPAR of $75 (+5.0%).
San Diego’s convention and event calendar remained a key driver of room demand. The city hosted 61 primary events in 2024, which accounted for approximately 1.1 million hotel room nights. Notable contributors included major trade shows, pop culture conventions, and international sporting events that drew visitors from across the globe.
December 2024: Closing the Year Strong
The final month of the year saw San Diego post a 62.7% occupancy rate, ranking eighth nationally and third in the Western U.S. competitive set, behind Orange County (66.6%) and Los Angeles (63.4%). While occupancy dipped slightly by 1% year-over-year, ADR and RevPAR continued to rise, with ADR increasing by 2% to $187 and RevPAR reaching $117 (+1%).
The city’s group travel sector had a particularly strong December, with group occupancy rising 6.1% to 17.8%. Major events at the convention center, including three large-scale gatherings, contributed 110,615 room nights to the market. Group ADR grew by 4.3% to $272, while group RevPAR surged 10.7% year-over-year to $48.
Marquee Events Fuel Tourism Success
San Diego’s vibrant event lineup was a significant driver of hotel demand throughout 2024. The city’s ability to attract high-profile gatherings ensured steady visitor traffic and bolstered the hospitality sector. Among the most impactful events:
San Diego Comic-Con International (July 25–28, 2024): This global pop culture phenomenon drew over 135,000 attendees, featuring major celebrity appearances and exclusive entertainment previews.
CRSSD Festival (March 2–3 & September 28–29, 2024): Waterfront Park hosted this popular biannual electronic music festival, with daily attendance of 15,000.
TwitchCon (September 20–22, 2024): A celebration of gaming culture, TwitchCon returned to the San Diego Convention Center, attracting thousands of content creators and fans.
World Design Capital 2024: Throughout the year, San Diego, alongside Tijuana, embraced its designation as World Design Capital with a series of arts, architecture, and design-focused events.
Breeders’ Cup World Championship (November 1–2, 2024): Del Mar Racetrack hosted this prestigious horse racing event, bringing a mix of international visitors and media coverage.
San Diego Food + Wine Festival (November 3–10, 2024): A week-long celebration of culinary excellence that drew food enthusiasts and industry professionals from around the country.
Looking Ahead to 2025
San Diego’s strong 2024 performance highlights the resilience of its tourism industry, even amid broader economic uncertainties. With a robust event schedule and continued investment in the visitor experience, the city is well-positioned to maintain its status as a premier travel destination in the year ahead. Growth in 2025 will continue to be modest but is expected to be strong enough to keep us in the top 5 markets in the U.S.
As the hospitality industry gears up for 2025, the key question remains: How will San Diego build on its success and continue to attract both leisure and business travelers? One thing is certain—San Diego’s appeal remains as strong as ever, with its perfect blend of cultural experiences, world-class events, and stunning coastal scenery.
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