The big news in 2016 was Marriott’s merger with Starwood and provides the new company with over 1,000,000 hotel rooms in 5,700 hotels, 30 brands and huge bargaining power with online travel agencies. The second was the Republican sweep—President Donald Trump will have an opportunity to change the economic landscape. President Trump has a majority in both the Senate and House of Representatives and if he focuses on tax reform, wages, regulations and the strength of our nation, he could keep this long but slow recovery going and dramatically enhance it.
San Diego is known for its mild year-round climate, tourist attractions, Convention Center, U.S. Navy and its more recent developments as a healthcare, biotechnology and communications technology development center. San Diego County has a population of 3.3 million and the city of San Diego has 1.3 million residents. It’s quality of life, coupled with the education sector (University of California, San Diego State University and University of San Diego) as well as others provide the foundation for much of the growth in biotechnology and telecommunications industries.
2016 is looking to continue the trend line of 2015 albeit with a somewhat muted feel. While average daily rate growth (ADR) will be a solid 4.5 percent, occupancy levels look to remain relatively flat, up just one half of one percent with demand outpacing supply 2.2 percent to 1.7 percent according to Lodging Econometrics and STR respectively, so this translates to a 5 percent growth in revenue per available room (RevPAR). Coupled with capital availability and the analytics and trends discussed below, this will be an active and exciting year.