San Diego, California, January 14, 2026
The San Diego Convention Center is grappling with significant infrastructure issues, including a failing roof and central plant. In response, the city plans to raise the hotel tax starting May 1, 2025, which is expected to generate $82 million in its first year for much-needed improvements. This tax hike will direct funds towards the convention center renovation, homelessness services, and street repairs, aiming to enhance the venue’s capacity and appeal for future tourism.
San Diego Convention Center’s Roof and Central Plant Fail; Hotel Tax Hike Provides Relief
San Diego, California – The San Diego Convention Center is encountering substantial infrastructure challenges, with failing roof and central plant systems necessitating urgent attention. In response, the city has approved a hotel tax increase, effective May 1, 2025, expected to generate approximately $82 million in its first year and about $1.04 billion over the upcoming decade. This revenue will be directed toward improvements in the convention center, support services for homelessness, and necessary street repairs.
Immediate Infrastructure Concerns
The Convention Center Corporation has identified over $400 million in essential capital needs, with $170 million deemed critical for immediate action. Notable projects include roof replacement, backup generator replacement, and an extensive evaluation of the central plant replacement plan. Due to the failing central plant systems, a phased replacement is projected to exceed $60 million over the next three to five years.
Hotel Tax Increase Details
In March 2025, the San Diego City Council sanctioned a transient occupancy tax (TOT) increase, termed Measure C, scheduled to commence on May 1, 2025. This measure increases the TOT from 10.5% to as much as 13.75%, contingent on the hotel’s distance from the Convention Center. The allocation of generated funds will be as follows:
- 59% for Convention Center improvements and ongoing operations
- 41% for homelessness services, which encompass shelter and support programs
- 10% for street repairs and infrastructural enhancements
The additional revenue during the first five years is projected to reach $766 million, with approximately $452 million designated for the Convention Center, $265 million for homelessness services, and $49 million for street repairs.
Background on Measure C
Measure C, approved by voters in March 2020, sought to finance the Convention Center expansion, homelessness services, and street repairs. Following extensive litigation, a state appellate court confirmed the measure’s passage in October 2025, enabling the city to begin collecting the increased hotel tax.
Implications for San Diego’s Tourism Industry
The anticipated expansion of the Convention Center is expected to draw more visitors, thereby increasing hotel room nights and associated revenues. Supporters estimate this expansion will yield approximately $10 to $15 million annually for the city’s general fund.
Conclusion
The infrastructure challenges facing the San Diego Convention Center have catalyzed the city to implement a hotel tax increase aimed at funding the essential improvements. This strategy strives to revitalize the Convention Center, boost tourism, and tackle critical city services, positioning San Diego as a competitive venue for conventions and major events.
Frequently Asked Questions (FAQ)
What is the San Diego Convention Center’s current infrastructure issue?
The Convention Center is facing significant infrastructure challenges, with its roof and central plant systems failing.
How will the new hotel tax increase help address these issues?
The hotel tax increase, effective May 1, 2025, is expected to generate approximately $82 million in 2025 and about $1.04 billion over the next decade. These funds will be allocated to Convention Center improvements, homelessness services, and street repairs.
What is Measure C, and how does it relate to the hotel tax increase?
Measure C is a transient occupancy tax increase approved by voters in March 2020 to fund the Convention Center expansion, homelessness services, and street repairs. After years of litigation, the measure’s passage was confirmed by a state appellate court in October 2025, allowing the city to begin collecting the increased hotel tax.
How will the Convention Center expansion impact San Diego’s tourism industry?
The expansion is expected to attract additional visitors, leading to increased hotel room nights and associated revenues. Proponents estimate that the expansion will generate approximately $10 to $15 million annually for the city’s general fund.
Key Features of the San Diego Convention Center’s Infrastructure and Funding
| Feature | Description |
|---|---|
| Infrastructure Issues | Roof and central plant systems failing, requiring over $400 million in capital investment, with $170 million needing immediate attention. |
| Hotel Tax Increase | Effective May 1, 2025, raises transient occupancy tax from 10.5% to up to 13.75%, generating approximately $82 million in 2025 and about $1.04 billion over the next decade. |
| Measure C | Voter-approved transient occupancy tax increase in March 2020 to fund Convention Center expansion, homelessness services, and street repairs; confirmed by state appellate court in October 2025. |
| Tourism Impact | Expansion expected to attract additional visitors, leading to increased hotel room nights and associated revenues, generating approximately $10 to $15 million annually for the city’s general fund. |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
