A year-end report from Atlas Hospitality Group shows just two new hotels opening in 2022, plus six others under construction countywide.
San Diego County hotel openings slowed significantly in 2022, but thanks to the long-awaited groundbreaking of Chula Vista’s bayfront resort hotel, last year’s construction activity increased sharply compared to 2021.
Atlas points out that the falloff in the number of hotels opening in 2022 is largely due to COVID-19. Many developers, it explained, had deliberately held off debuting their properties in 2020 due to the pandemic, which in turn artificially pushed up the number of openings in 2021. Last year, in fact, marked the fifth highest year for hotel openings since 2010, Atlas said.
The steady climb in interest rates over the last year, coupled with fears of a potential recession, has made the financing of new projects more costly, and as a result, such developments are viewed as riskier by lenders.
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