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Hotel business slumps in January

But competing state cities go gangbusters

According to Smith Travel Research statistics, San Diego's hotel business continues to sag while Los Angeles, Orange County, and San Francisco soar.

January hotel occupancy locally dropped from 62.8% to 62.6%, a decline of 0.4%. But occupancy in San Francisco was up 6.6%, Orange County 5.8%, and Los Angeles 5%.

SD's average daily room rate inched up 0.1% while the other three enjoyed gains from 5.7% to 11.9% in San Francisco.

San Diego's average daily room rate of $125.05 is still below the $127.08 of January 2007, before the recession. The other three California cities have enjoyed big gains in those seven years.

Hotel guru Jerry Morrison blames the cutback in tourism funds and the effect of the sequester for San Diego's anemic figures.

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According to Smith Travel Research statistics, San Diego's hotel business continues to sag while Los Angeles, Orange County, and San Francisco soar.

January hotel occupancy locally dropped from 62.8% to 62.6%, a decline of 0.4%. But occupancy in San Francisco was up 6.6%, Orange County 5.8%, and Los Angeles 5%.

SD's average daily room rate inched up 0.1% while the other three enjoyed gains from 5.7% to 11.9% in San Francisco.

San Diego's average daily room rate of $125.05 is still below the $127.08 of January 2007, before the recession. The other three California cities have enjoyed big gains in those seven years.

Hotel guru Jerry Morrison blames the cutback in tourism funds and the effect of the sequester for San Diego's anemic figures.

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8

San Francisco and Los Angeles have more culture. More cosmopolitan, more interesting museums and arts, food scene, and history. It can also be that there are less middle class coming to San Diego to visit the Zoo and Sea World as part of their L.A. vacations. The wealthy certainly prefer L.A. and San Francisco to a visit to San Diego.

Feb. 28, 2014

Ponzi: L.A. certainly has some great art museums. San Francisco's are good, but somewhat disappointing in my opinion. San Francisco has better opera and symphonic music. L.A.'s philharmonic is attracting people from all over because of its brilliant young conductor.

The U.S. is becoming a plutonomy -- that is, an economy based on spending by the affluent. San Diego has less to offer that upscale market than L.A. or San Francisco. Anaheim can't match those cities either. Best, Don Bauder

Feb. 28, 2014

Local night life is celebrated in Los Angeles and San Francisco, and persecuted in San Diego. In spite of that, we attract lots of international young people. I wonder if the survey includes weekly rentals. One complex in PB, the Avalon, has 1200 units, and much of Mission Beach is rented that way in the Summer. Forty years ago, locals lived there. The long term trend is positive.

March 1, 2014

Psycholizard: The tourist industry is always hyping the Gaslamp. Sure, drunkenness is discouraged, but there is plenty of night life in San Diego. Best, Don Bauder

March 2, 2014

"Hotel guru Jerry Morrison blames ... the effect of the sequester for San Diego's anemic figures". So, the conservative, anti-government hoteliers make less money when the conservative politicians they send to Washington force deep cuts in federal spending. Hmmmm....

March 2, 2014

Matt101: Remember that those supposedly anti-government hoteliers thrive off government subsidies. As I have said for years on this blog: the self-professed conservatives send armies of lobbyists to Washington, Sacramento and San Diego's city hall to beg for tax breaks, subsidies, etc. The behavior of alleged conservatives is hardly consistent with conservative ideology. Best, Don Bauder

March 2, 2014

The hotel industry should take a look at all these homes here that are being rented out on a nightly basis as well. We live in an area that is high on rentals, and now one of these homes has been turned into a nightly rental. Do they pay hotel taxes? If someone is using a house as a business, shouldn't they have to pay some sort of tax, and shouldn't they have permits or some such? Just curious.

March 2, 2014

rosijoni: I don't know the answer to your question. It is an intriguing one. Best, Don Bauder

March 3, 2014

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