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According to numbers from Smith Travel Research, San Diego hotel business picked up moderately last year. Average occupancy rose from 62.9% in 2009 to 66.7%. But the average daily room rate dropped to $121.93 from $124.98. Things improved later in the year. In December, occupancy rose to 53.0% from 48.5% in December of 2009 as the average daily room rate rose to $103.44 from $99.05. In the fourth quarter, occupancy rose to 60.0% from 56.1% a year earlier and average daily room rate inched up to $116.30 from $115.94 a year earlier.
La Jolla-based hotel guru Jerry Morrison says, "We had a better year in 2010 than in 2009," but he is concerned about the economy. "More people are traveling, but they are traveling down -- staying two nights instead of three nights," and going to less expensive hotels. "They shop for bargains online, and are much more inclined to travel at the last minute to get a bargain." A number of upscale San Diego hotels ran into financial difficulties last year, but medium- and down-scale hotels had financing troubles, too. "Lenders are demanding more coverage on the loan," says Morrison.
According to numbers from Smith Travel Research, San Diego hotel business picked up moderately last year. Average occupancy rose from 62.9% in 2009 to 66.7%. But the average daily room rate dropped to $121.93 from $124.98. Things improved later in the year. In December, occupancy rose to 53.0% from 48.5% in December of 2009 as the average daily room rate rose to $103.44 from $99.05. In the fourth quarter, occupancy rose to 60.0% from 56.1% a year earlier and average daily room rate inched up to $116.30 from $115.94 a year earlier.
La Jolla-based hotel guru Jerry Morrison says, "We had a better year in 2010 than in 2009," but he is concerned about the economy. "More people are traveling, but they are traveling down -- staying two nights instead of three nights," and going to less expensive hotels. "They shop for bargains online, and are much more inclined to travel at the last minute to get a bargain." A number of upscale San Diego hotels ran into financial difficulties last year, but medium- and down-scale hotels had financing troubles, too. "Lenders are demanding more coverage on the loan," says Morrison.