Hotel performance has shown increased volatility in recent months. After a sluggish start to May, the market surged heading into Memorial Day, only to see momentum ease again in the first week of June. Both demand and ADR declined compared to the same week last year, reflecting a temporary pullback following late-May strength.
Despite last week’s softness, the broader outlook remains intact. The April 2025 lodging forecast was conservative by design and anticipates 17.7 million room nights sold this year—a modest increase of 180,000 over 2024. As of last week, the market is tracking approximately 70,000 room nights ahead of last year’s pace, leaving 10.3 million additional room nights needed to meet the forecast. While performance will require close monitoring in the coming months, the year-end target remains well within reach if seasonal trends hold as the summer season unfolds.
- Room Nights Sold: San Diego hotels sold 333,248 room nights, reflecting a year-over-year (YoY) decline of 42,854 room nights.
- Occupancy: Average occupancy reached 71.6%, down 13.8% YoY, ranking 13th among the top 25 U.S. markets and 4th in the western region, trailing Los Angeles (74.4%) and just ahead of Orange County (71.0%).
- Top-performing U.S. markets: New York (90.8%), Boston (80.5%), and Saint Louis (80.0%).
- Top San Diego submarkets: Mission Valley (78.9%), I-15 Corridor (78.5%), and Point Loma (78.0%).
- Average Daily Rate (ADR): $207, a 10.9% YoY decrease.
- Revenue per Available Room (RevPAR): $148, down 23.3% YoY.
- Group Segment (Upscale+ Properties):
- 47,311 group room nights sold, a decrease of 7,200 room nights YoY.
- ADR: $302 (-2.4% YoY), RevPAR: $68 (-26% YoY).
- Convention Impact: The San Diego Convention Center hosted one major event—Competitor Group, Inc.—and another was moving into the convention center on Saturday, which combined, contributed 9,255 room nights to the market.
View the complete hotel performance report here.
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