California Experiences Hotel Boom in First Half of 2017
By Karen Jordan
California has seen a hotel boom so far this year.
The number of new hotels that opened statewide in the first half of the year increased 53%.
There were also 15% more hotels in development and 6% more under construction compared to the first half of last year, according to a study by the Atlas Hospitality Group. A record number of hotel rooms opened in the first six months of the year.
Twenty-six hotels, with 4,730 rooms, opened in the first half of 2017 compared to 17 hotels in the same period of 2016.
Three hotels with 461 rooms opened in Orange County, the Orange County Register reports.
The hotel supply in Los Angeles had little change, but four of the five biggest hotels to open in California in the first half of the year were in the city, TravelWeekly reports.
Atlas President Alan Reay said many hotels are being built now because the price of renovating older hotels is high, making it more attractive to build a new hotel, and construction financing and loans are readily available and there have been six years of revenue increases.
Hotel occupancy in the first three months of this year decreased 0.7%, according to a hotel report by CBRE. The average daily rate jumped 2.2%, which resulted in a 1.5% revenue increase per available room.