US hotel RevPAR is pacing toward 5% growth in 2026. I’ll break down what’s driving it, how it compares to STR and PwC’s calls, and whether 2027 has alarm bells going off.
In January I forecasted 2 to 3 percent RevPAR growth for San Diego this year. I’m revising that upward, and June is why. Four of the first six months posted double-digit growth, and June closed the half with an all-time record. See the full mid-year review.
San Diego’s hotel market closed 2025 with strong fundamentals at 72.3% occupancy and $213 ADR, but faces cooling leisure demand and rising costs heading into 2026, where modest RevPAR growth is expected despite new supply pressures and a hidden tax drag.
This market-by-market outlook examines where performance is holding, where it is weakening, and what hotel owners and operators should be watching as fundamentals continue to reset.
Explore the US economic impact on the San Diego hotel market including RevPAR performance, hotel development updates, major transactions, and tourism trends.
San Diego’s hotel market shows slowing momentum in 2025 with RevPAR expected to dip into negative territory, but recovery is projected in 2026 as new supply, shifting demand, and rising costs reshape the region’s lodging landscape.
Weekend leisure bookings are cooling, new hotels are entering the market, and operating costs are climbing.
This mid-year 2025 San Diego hotel report breaks down hotel performance metrics, including occupancy, average daily rate (ADR), revenue per available room (RevPAR), and the construction pipeline by submarkets.
Our hotel forecast for 2025 focuses on changing trends impacting occupancy and how you can prepare your property for strong results this year.
San Diego’s economy is generally supported by three primary sectors: defense, tourism, and technology/innovation. See how San Diego real estate and lodging will perform in 2025.
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