"'Drive in' demand has been a significant factor in San Diego's recovery pace by offsetting cancellations from large business groups," the report says, adding that the region's North County resort community has been one of the biggest beneficiaries of the "drive in" market arriving from Orange County, Los Angeles and Arizona. This market has been such a driving force countywide that it is expected to buoy the new resorts that are opening here, according to Ernst & Young's researchers.

Promotional campaigns have also been credited with speeding up the recovery of San Diego's lodging industry, which Ernst & Young says is occurring at a faster pace than other California submarkets. For instance, the Recover San Diego campaign has helped raise occupancy levels from approximately 70% to 75% this year, the report says.