Santa Cruz County Lodging Sees Mixed Performance in July

Santa Cruz County’s lodging industry showed steady overall performance in July, with total revenue rising 2.3% year-over-year to $45.5 million, according to data from Visit Santa Cruz County. The increase was supported by a 2.5% rise in average daily rate (ADR) to $269.28.

Hotel performance, however, softened, as both occupancy and ADR declined, contributing to a 4.7% drop in revenue. Short-term rentals provided a brighter picture, with occupancy up 6.8% and ADR climbing 14.8% to $491.55, driving a 13.2% increase in revenue to $18.4 million despite lower overall supply.

The average length of stay in July increased to 3.7 days, up from 2.5 days in 2024, while the share of overnight visitors rose to 80.1% from 79.1%. Out-of-state visitors also grew, rising from 33.2% to 42%, with Texas and Florida leading the way. Officials said the trend contributed to longer stays and greater economic impact for the region.

Regional airports in Santa Cruz County reported a 3% increase in TSA checkpoint volume, handling 2.9 million travelers. Online engagement was mixed: total Facebook engagements fell 4.1% year-over-year, audience growth climbed 2.2%, and total impressions surged 122% to 3 million.

Nationally, U.S. hotel performance softened in July, with occupancy down 1% and revenue per available room (RevPAR) off 1.1% year-over-year, while ADR remained flat. Year-to-date, ADR and RevPAR are up 1.1% and 0.4%, respectively. Luxury hotels outperformed with gains in rate and demand, while economy and independent properties saw the steepest declines.

The Bureau of Labor Statistics revised May and June job reports downward by a combined 258,000 jobs, slightly increasing the unemployment rate to 4.2% after a gain of 73,000 jobs in July. Inflation over the past 12 months was 2.7%, with consumer prices up 24.7% compared with five years ago.