San Diego Hotels Are Hurting: Report

 San Diego’s hotel and tourism business is among the nation’s absolute worst right now, according to a published report.

Could it be the downturn of the economy or consistent skyrocketing San Diego prices? Or perhaps the unusual overcast San Diego spring weather? Either way, out-of-towners are apparently staying clear of our usual tourist-laden city, reports the San Diego Reader.

During the recent week of June 7-13, local hoteliers’ revenue per available room was down a stunning 42.3 percent, reported the Reader. That is the largest decline in the Top 25 markets, according to Smith Travel Research. Occupancy in San Diego -- or lack thereof -- was the second worst performance in the 25 major markets, next to Detroit, where San Diego facilities were down 21.2 percent that same week.

Although it may not be fair to judge the industry on just one week, if the whole month of May were considered, San Diego occupancy was down 14.2  percent, still making the worst major markets list at No. 8.

Revenue per available room in San Diego was sixth worst among the Top 25 markets, at 26.1percent for May and worse than the drops in Orange County, Los Angeles and San Francisco, according to the Reader.

Proof that the San Diego hotel industry is in trouble: The owners of the W Hotel, Sunstone Hotels, defaulted on their June payment and may be headed to foreclosure. A spokeswoman for the W, however, said they are seeing a pickup in summer bookings.

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