San Diego benefits from a diverse mix of demand generators, including local corporations, government entities, meeting and group business, and leisure-related activity. Favorable year-round weather conditions and attractions such as the San Diego Zoo, Coronado Island, Pacific Beach, SeaWorld, La Jolla, and the nearby Temecula Wine Valley generate steady tourism demand. Furthermore, compression from large conventions held at the San Diego Convention Center (SDCC) produces a significant number of room nights. Over the last two decades, San Diego achieved occupancy levels in the mid-70s during stable and strong economic periods. Following the pandemic, San Diego was among the first West Coast markets to recover, benefiting from strong leisure demand and group bookings. By year-end 2024, occupancy was holding steady in the mid-70s, with ADR having reached a record level at nearly $213 (rounded). In 2025, occupancy declined for the first time since the COVID recovery, as the broader market was affected by reductions in the government and education sectors, more conservative spending within the life-sciences industry, and a pullback in both domestic and international travel. In addition, the ramp-up of the 1,600-room Gaylord (opened in May) and the reopening of the Hotel del Coronado contributed to a broader distribution of demand across the market.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
|
|
|
| ADR Change
|
|
|
| Market Demand Change
|
|
|
| Hotel Occupancy Increase/Decrease
|
|
|
| RevPAR Change
|
0.0%
|
0.0%
|
| Market Supply Growth
|
Change In Value For Market:
Legend
| Significant Value Increase:
|
Greater than +10%
|
| Moderate Value Increase:
|
Between +3% and +10%
|
| Stable Values:
|
Between -3% and +3%
|
| Moderate Value Decline:
|
Between -3% and -10%
|
| Significant Value Decline:
|
More than -10%
|
San Diego RevPAR
| Year |
RevPAR |
| 2008 |
$98.93
|
| 2009 |
$78.58
|
| 2010 |
$81.07
|
| 2011 |
$86.87
|
| 2012 |
$93.24
|
| 2013 |
$97.41
|
| 2014 |
$106.53
|
| 2015 |
$115.04
|
| 2016 |
$119.39
|
| 2017 |
$123.73
|
| 2018 |
$129.34
|
| 2019 |
$132.55
|
| 2020 |
$137.21
|
| 2021 |
$
|
| 2022 |
$
|
| 2023 |
$
|
| 2024 |
$
|
| 2025 |
$
|
| 2026 (f) |
$
|
| 2027 (f) |
$
|
For more information, please contact:
