Hotel Market Flexing Its Muscles
San Diego’s hospitality market has higher occupancies, better RevPAR and new developments. (So if you're having trouble getting a date in the area, just try the hotel bars.) That’s why we’re excited to present the San Diego Hospitality Summit at the Hyatt Regency La Jolla on Thursday at 7:30 AM.
Dealy Development CEO Perry Dealy, who will speak at the event, says that the recovery will continue to improve in the San Diego and national marketplace. “We will see increasing positive RevPAR in the San Diego hotel industry, since San Diego continues to be a strong destination for both business and tourists alike,” he tells us. For the right locations, project economics are finally getting to a point that financing and equity are available. We still need to have the third phase of the SD Convention Center achieve a certainty with occupancy to reinforce the convention business to the region, he adds.
San Diego Tourism Authority CEO Joe Terzi, also a speaker, tells us that he’s encouraged by the market's strong performance through August, with citywide occupancy at 78%. “Our current projections show continued growth in both occupancy and rate for the next several years, projected RevPAR growth of 7% to 9%,” he says. Leisure travel has increased dramatically, and the city is seeing strong growth in international visitation and very positive short-term group activity. Next year and 2016 will also see a marked increase in city-wide convention occupancy, Joe says.
Partner Engineering & Science principal Mark Lambson, who will be moderating the event, tells us that as the economy continues to improve, travel and hotel needs will increase. “From personal experience, I know all non-necessary business travel and hotel expenses were questioned and frowned upon," but that attitude has changed. San Diego has a lot going for it in terms of tourist attractions, along with major conventions, such as ComiCon. San Diego’s also an attractive place for foreign investment, Mark says. “I see this as a steady, and slightly growing sector.”
San Diego Padres SVP Wayne Partello, who will speak at the event as well, tells us that a new high-definition video board will be coming to Petco Park in 2015, which he calls the “most impactful upgrade to the fan experience” in the history of any stadium in San Diego (and that experience is important: Petco is a major magnet for out-of-town visitors). Wayne also says that during the offseason, the team is working to finalize its 2015 promotional lineup. There will be a number of new in-game entertainment features that take advantage of the new HD video board. One of the best-received promotions of this past season was Baseball Night in San Diego. “Every Saturday night, Petco Park was the place to be, and every fan in attendance received that game’s giveaway,” Wayne explains. “The reintroduction of Baseball Night in San Diego helped us reach the most sellouts in the past seven seasons at Petco Park.”
