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Market Report

San Diego Hospitality Market Report

2024 Investment Forecast

San Diego Captures the Highest Occupancy
Rate Among Major West Coast Markets

Multiple dynamics support a record year for room nights booked. San Diego County logged an all-time high visitor count last year. Still, local hotel occupancy was unable to fully recover. This hurdle, however, is overcome during 2024, with the metro representing one of just three major U.S. markets where occupancy will surpass its 2019 recording. A full schedule of cruise ship calls and conventions, along with attractions, including the San Diego Zoo, SeaWorld and Legoland, will all serve to fuel a healthy level of tourism; however, other factors may contribute to the record-setting year. A larger number of events at Petco Park and Rady Shell may translate to a rise in local and out-of-town attendees that opt for an overnight stay in and around the CBD, rather than driving home that evening. Expectations for household budget tightening may also benefit the local hospitality sector, as families from other Southern California markets may choose San Diego for weekend vacations in lieu of longer trips elsewhere. Beyond this year, a potential rise in large-scale meetings may be on the horizon, as the Gaylord Pacific Resort & Convention Center will include nearly 500,000 square feet of convention space at completion.
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