Amid decline, LA still leads CA in hotel development: report

But new hotel rooms in LA declined 65 percent from 2017

Los Angeles /
Jan.January 28, 2019 04:00 PM
Palihouse lobby, West Hollywood (Credit: Booking.com)

Los Angeles County is leading the state in hotel development by a landslide.

A new report from Atlas Hospitality Group revealed there are 6,727 rooms under construction in the county, double the amount in Santa Clara County up north, which ranked second.

More hotel rooms also opened in L.A. County last year than anywhere else in California. In 2018, 11 new hotels with a combined 1,526 rooms opened. San Diego followed with 1,224 rooms.

Overall, there are 203 hotels with 29,114 rooms under construction in the state. There were 52 new hotels with 6,592 rooms that opened in 2018.

Yet, despite ranking first in many categories, L.A. is showing signs of a slowdown in its hotel construction boom.

The number of hotel rooms dropped 65 percent from 4,309 rooms in 2017 to 1,526 rooms in 2018, according to the report.

Hotel transactions also dropped 4 percent year over year to 48 trades, while total-dollar volume decreased 14 percent to $1.4 billion in 2018. Still, hotels are increasingly expensive in the area — the county’s median price per room increased nearly 18 percent to $11.8 million.

The Doubletree Westside in Culver City, Hotel MdR in Marina del Rey and Palihouse West Hollywood are among the most expensive hotels to have traded last year, The Real Deal previously reported.

Developers remain active, too. There are about 250 hotels with 39,974 rooms in various stages of planning in the county, up 19 percent from 2017.

Yet previous reports from Atlas estimate that only about a quarter of those may get completed. A report last January from the hotel brokerage firm estimated that around 10,000 new hotel rooms would come online in L.A. in the next few years — even though 33,500 hotel rooms had been proposed.


Related Articles

arrow_forward_ios
Photo illustration of Gov. Gavin Newsom and the Holiday Inn in Long Beach (Getty, Google Maps)
California spent $850M on inns for homeless
California spent $850M on inns for homeless
The Georgian at 1415 Ocean Avenue and The Viceroy at 9291 Burton Way (Google Maps)
An inhospitable market? LA’s biggest hotel sales plunge in 2020
An inhospitable market? LA’s biggest hotel sales plunge in 2020
Slate Property Group co-founder Martin Nussbaum and the Hotel Cecil (Slate, Google Maps)
Developer snags $30M loan for Hotel Cecil conversion
Developer snags $30M loan for Hotel Cecil conversion
Justin Myers, Vice President of Atlas Hospitality
Study: California hotel construction outlook is bleak
Study: California hotel construction outlook is bleak
AEG CEO Dan Beckerman (Credit: Shaun Clark/Getty Images)
AEG plans 160-key hotel next to its DTLA headquarters
AEG plans 160-key hotel next to its DTLA headquarters
Pacific Hospitality Group CEO Tim Busch and a Zen Room at Huntington Beach’s Pasea Hotel and Spa
Desperate for revenue, LA hotels pitch “zen offices” to work-from-homers
Desperate for revenue, LA hotels pitch “zen offices” to work-from-homers
County supervisors Mark Ridley-Thomas and Janice Hahn
LA County Supervisors plan for the long-term as the homeless move into hotels
LA County Supervisors plan for the long-term as the homeless move into hotels
Gavin Newsom (Credit: Emma McIntyre/Getty Images)
Homeless COVID-19 patients could save California’s hotel owners
Homeless COVID-19 patients could save California’s hotel owners
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...