(image from travel.pasadenanow.com)
According to Smith Travel Research figures, San Diego's hotel occupancy rate last year climbed only 1.5%, to 71.6%; that lagged the nation's top 25 markets with a combined rise of 2.1%.
San Diego also lagged San Francisco, which was up 3.3%; Orange County, up 2.6%; and Los Angeles, up 1.9%
San Francisco's average daily room rate is $187.79 versus San Diego's $135.84.
"The sequester continues to impact San Diego as government business was down in December," says Encinitas-based Jerry Morrison, a hotel expert. He believes San Diego will lag San Francisco, Los Angeles, and Orange County throughout this year.
The San Diego Tourism Authority laid off a lot of staff for lack of funding. The staff is now being rebuilt, but in the group market, "it will be two years before we will be back in the market wth an effective sales team."