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IRR-San Diego Mid-Year Viewpoint 2015 Local Market Report - Lodging

08/05/2015
Published By: Integra Realty Resources

Market Commentary

The San Diego hotel market continues to thrive as a result of increased tourism in San Diego and economic recovery. According to research by IRR, the current occupancy throughout the county has already surpassed the previous record set in 2006, and the average daily rate continues to increase at rates of approximately 5% per year. Growth in occupied rooms is expected to outpace the growth of new supply, and ultimately RevPAR is expected to grow at a rate of over 5%. Generally positive economic conditions coupled with the San Diego Tourism Authority allocating tens of millions into advertising will continue to benefit hotel properties within the county.

Much of the new construction is focused in Downtown San Diego where 11 projects are expected to be built over the next two years. Trends related to hotel development include mixed-use projects that include hotel, residential, and retail/restaurant components. This is especially prevalent in Downtown projects due its walkability and close proximity to both home-life and work-life. 

Development is also prevalent in Carlsbad (home of LEGOLAND California) with three projects opening within the last year. Even with this new construction, local market participants are stating that hotel construction is falling short of demand. This coupled with high barriers of entry with regards to hotel development will continue to drive hotel prices upward. Over the next 12-36 months, we expect the hotel market to continue to be positive as the local economy expands.

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Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.

IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.

 

Release Date08/05/2015 - 14:30

Source

Integra Realty Resources

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