It’s been a long post-recession slog, but the San Diego hospitality market has finally emerged from mere recovery to a new-found robustness, with occupancy and RevPAR growth, plus new development. That's why we're excited to host our San Diego Hospitality Summit to talk about it on Oct. 9 at the Hyatt Regency La Jolla starting at 7:30 AM.
Hospitality fundamentals in San Diego County should continue to improve over the next 12 to 18 months, Pacifica Cos VP hospitality acquisition Len Howell, who will speak at the event, tells us. He believes growth in occupied rooms will continue to outpace growth in rooms supply, with occupancy improving slightly and ADR growth accelerating. RevPAR in 2015 should be up 5% to 7%, with most of it coming from an rise in ADR, Lenny predicts.
San Diego is an exceptional hospitality market right now, buoyed by strong recovery fundamentals, says Lowe Destination Development EVP Matt Walker, who will also speak. That’s because little new supply has come on line, but demand is way up, particularly in leisure and corporate segments and upper upscale properties. San Diego benefits from being the largest drive market in the country with lots of staycations and business travel within a 200-mile radius, he tells us. “Looking ahead, the supply question will become more pertinent, but we're expecting solid operating results heading into 2015.” Matt’s snapped at southernmost point in Africa at the Cape of Good Hope, with the Atlantic Ocean on his left and the Indian Ocean on his right.
Portman Holdings SVP Roger Zampell, also a panelist, tells us that his company has Phase 1 of Lane Field under construction, and “we’re actively pursuing Phase 2. Our evaluation of the market going forward shows continued strength due to high barriers to entry, and the desirability of this market for both tourism and group demand.” Ultimately, the development will include a 253-room SpringHill Suites and a 147-room Residence Inn, in addition to about 27k SF of retail space and more than 400 parking spaces.
