The San Diego hotel market, long known for its high occupancy and diverse demand drivers, shows uneven performance across submarkets in 2025. While the region continues to benefit from military installations, convention business and strong leisure appeal, factors such as rising supply, softness in domestic leisure, especially at the select service segments, and cuts in government travel are weighing on results.
San Diego hotels face mixed fortunes amid rising supply and shifts in government travel
Northeast-Escondido area shines, while Mission Valley and South-East struggle under new inventory pressures
CoStar Analytics
September 18, 2025 | 4:32 P.M.
RELATED ARTICLES
This news story is available exclusively to CoStar subscribers.
Watch the video to learn how you can access industry leading CRE news and the data analytics you need to drive success.
This news story is available exclusively to CoStar subscribers.
Ready to Learn More?
Sign Up For a Personalized Demo.
Sign Up For a Demo To Learn More.
Already A Subscriber? Sign In