A Revitalized San Diego Means Difficult Lodging Options for Visitors

April 27, 2005 -- San Diego has long been synonymous with long sandy beaches, ideal weather and beautiful sunsets that attract tens of thousands of visitors each year. While the draw of the beaches remains, a once seedy part of San Diego has transformed into a destination in of itself. San Diego has reinvented its previously undesirable downtown into a cultural and entertainment hub.

Unfortunately, the city has become a victim of its own success. The unintended consequence of the new popularity has meant some travelers have difficulty finding adequate lodging.

According to the San Diego Convention and Visitors Bureau, 2004 saw hotel/motel occupancy rates increase to 77% downtown. Smith Travel Research says that of the top U.S. markets, only New York and Oahu had higher occupancy rates at 81% and 80% respectively. In fact, the problem seems to be worsening as there was a 6-7% increase in demand and only 2-3% increase in hotel room supply in 2004. San Diego's downtown is only expected to add 275 new hotel rooms in 2005.

Frustrated visitors have begun to look elsewhere for accommodations. Some have benefited from using the downtown's growing number of high rise condominiums that fill the San Diego's skyline as vacation rentals. Shan Evulich, Sales Manager with Gaslamp Vacations (www.gaslampvacations.com), an agency specializing in downtown San Diego vacation rentals, says, "many of the condo buildings often include luxury amenities found at upscale hotels such as gyms, pools/spas, concierges, lounges, & even valet parking." She says, "vacation rentals can be a cost effective alternative to hotels as they often offer larger spaces such as 2 bedroom units, no cost parking, and the option to prepare meals in their kitchens."

The increasing demand is coming from both the business and leisure traveler. In November of 2004, the Convention Center reported it had more then 453,350 attendees and 625,262 room nights blocked for conventions in 2005. This reflects 13,000 more room nights than were blocked in 2004. Some conventions such as the Society for Human Resource Management meeting will bring in as many as 20,000 participants for just one event. The Convention Center will commonly host multiple events simultaneously in its 11 acre space which often leads to the local hotels being sold out.

In addition, the leisure traveler has accelerated the lodging crunch, as they gravitate to new attractions in the downtown area. PETCO Park (new home of the San Diego Padres') and the USS Midway aircraft carrier museum, both of which opened last year, have successfully garnered tourists' time and attention. The historic Gaslamp Quarter continues to gain notoriety for its popular and growing number of restaurants and nightlife. This along with the traditional downtown attractions of Balboa Park, home of the world famous San Diego Zoo and Seaport Village means the downtown area has become a very compelling destination. As a result of the growing popularity and hotel room shortage, San Diego's downtown area now has the highest average room rate of anywhere in the county. In 2004, the average downtown hotel room rate was $152.69 versus $115.13 for that of the county. In the end, it is the visitor that pays the price for the success of San Diego's urban metamorphosis.

Contact: Christian Evulich
Gaslamp Vacations
(619) 446-6329
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A Revitalized San Diego Means Difficult Lodging Options for Visitors

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A Revitalized San Diego Means Difficult Lodging Options for Visitors

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