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Hotel occupancy rates are officially in the 80% range in San Diego, up 1.4% over last year, according to research from RAR Hospitality. This year, RevPAR was up 4.1%, driven mostly by hotel rate gains. With occupancy already running high, next year, RevPAR gains—expected to increase 2.5%—will likely all come from rate gains with no growth in occupancy. Still RevPAR is expect to grow through 2019 in San Diego.

“It is really hard to get occupancy over 80%,” Bob Rauch, CEO and founder of RAR Hospitality, tells GlobeSt.com. “Once you hit that high 70% and 80% range, you have to have an occupancy that performs well every single month. San Diego still have a very powerful summer season, but it is not perceived as the place to go for the winter. San Diego is also a 55% leisure market. Once we hit that high 70% and 80% range, it is going to be all rate after that to drive RevPAR growth.”

Kelsi Maree Borland

GlobeSt

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