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.
World Cup overflow, new property openings, and major events as the primary demand drivers for the back half of the year.
Let’s pop the hood on the April 2026 data and look at exactly what is happening submarket by submarket, and more importantly, what you should be doing about it.
If you only looked at February, you’d think the San Diego market’s firing on all cylinders. But zoom out to the trailing twelve months, and the picture changes. See the full February 2026 report.
An additional 1,000+ rooms are entering the San Diego market in 2026, creating supply pressure that will moderate RevPAR growth despite improving demand fundamentals.
Exploring hotel development opportunities? Here’s what to consider if you’re deciding whether to buy or build a hotel in San Diego, or elsewhere!
Hotel performance varies dramatically across the region’s seven major submarkets, each shaped by distinct demand drivers, supply dynamics, and competitive positioning.
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.
See how growing hotel inventory has affected all 3 major markets in southern California in regards to Occupancy, ADR, and RevPAR.
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