San Diego hotels had a mixed performance heading into Labor Day weekend. While room night demand matched last year’s levels, the mix shifted. A medium-sized convention held during the same week in 2024 came into town a week later in 2025, reducing weekday demand. In contrast, Labor Day weekend saw a surge, with Saturday night occupancy across the city reaching 97% to 99%.
Despite the holiday boost, hotels lowered rates for most of the week. Occupancy remains softer than in 2024, partly due to the additional inventory from the Gaylord, resulting in a year-over-year decline in RevPAR.
Week of August 24 – 30, 2025
- Room Demand: 329,636 room nights (+1,119 rooms /+0.3% YoY).
- Occupancy: 70.2% (-3.4% YoY); 8th among the top 25 markets and 2nd in the western competitive set, behind Seattle.
- Top Performing US Markets: New York – 89.7% (+1.2% YoY), Boston – 79.4% (-5.1% YoY), and Seattle – 78.7% (-3.7% YoY)
- Highest Performing Areas Locally: La Jolla – 76.9% (+1.1% YoY), Point Loma – 75.1% (+3.6% YoY), and UTC – 73.8% (-4.2% YoY)
- ADR: $214 (-$7 /-3.4% YoY).
- RevPAR: $150 (-$11/-6.8% YoY).
- Group Performance (Upscale+ Properties) and Convention Activity:
- Room Demand: 33,255 group room nights (+2,119 rooms /+6.3% YoY).
- Occupancy: 15.9% (-6.7% YoY).
- ADR: $284 (+1.8% YoY).
- RevPAR: $45 (-4.3% YoY).
- The National Association of Chain Drug Stores conference concluded last week at the convention center, generating 3,757 room nights.
View the complete hotel performance report here.
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