A rendering of the casitas-style resort hotel to be developed in Coachella, California | Courtesy George Smith Partners

California Hotel Builds May Break Record in 2018

Carrie Rossenfeld Hospitality & Tourism

California hotel development is on track to hit a new record in 2018, according to an annual report from Irvine, California–based Atlas Hospitality Group. 2017 was a record-breaking development year for the state’s hotel sector, and 2018 is on pace to eclipse it.

The firm reports that lenders and developers continue to be very bullish on new California hotel construction, as they see a very positive long-term outlook for the Golden State. The fact that construction costs are up 20-25% over the last 12 months seems to have done little to dampen the pace of development. California hotel values continue to climb, which helps offset the increased cost of construction. Midway through 2018, all signs continue to be positive.

Atlas reports that in Orange County, three hotels with 445 rooms opened in the first half of 2018. The largest was the 164-room Hampton Inn & Suites Orange County Airport in Irvine. Orange County has nine hotels with 2,391 rooms under construction, and the largest is the 613-room Westin Anaheim Resort. The region has 63 hotels and reported 10,756 rooms in planning,

San Diego County added four hotels with 627 rooms, the largest being the 250-room LEGOLAND Castle Hotel in Carlsbad, according to Atlas. There are 21 hotels with 3,410 rooms under construction in the county, and the largest continues to be the 400-room InterContinental in Downtown San Diego. The county has 84 hotels (up 11 percent from 2017) and 17,080 rooms in planning (up 13 percent from 2017).

In Riverside County, the firm reports that two hotels with 337 rooms opened in the first half of 2018, the larger being the 183-room Courtyard by Marriott Temecula Murrieta. Riverside County has 15 hotels with 2,196 rooms under construction, the largest being the 340-room Pendry La Quinta. Riverside County has 56 hotels (up 8 percent from 2017) with 9,370 (down 4 percent) reported rooms in planning, including the 4,000-room Moon World Resort in the Coachella area.

Atlas also reports that San Bernardino County had two hotels with 203 rooms open, led by the 108-room Fairfield Inn & Suites by Marriott Ontario Rancho Cucamonga. The county has eight hotels with 841 rooms under construction, with a 131-room Element by Westin in Ontario leading the way. San Bernardino County has 38 hotels with 3,533 rooms in planning, up 36 percent and 71 percent, respectively.