Convention center activity, leisure demand and solid growth in San Diego’s life sciences industry has prompted CBRE to raise its forecast for hotel performance in 2023. Revenue per available room (RevPAR) is expected to increase to $157.26, up 6.3% year-over-year and a $4.21 increase from CBRE’s previous forecast issued in November 2022.

“A shift in the drive-to leisure demand that came with the pandemic boosted San Diego as a highly desirable location,” said CBRE EVP Michael DiPrima. “In fact, San Diego was the sixth fastest hotel market in the U.S. to recover from the pandemic, according to CBRE research.”

Additionally, CBRE expects the growth to continue into 2024. “In the next two years, you will see growth in the number of additional rooms booked in San Diego compared to before the pandemic. This is a testament to the strong convention center recovery and longer-term positive outlook,” added DePrima.