2024 Year -End
The AC Hotel by Marriott Sacramento was one of the largest openings in 2024
ALAN X. REAY
PRESIDENT
CALBRE 00959901
949.622.3409
AL**@AT**************.COM
WWW.ATLASHOSPITALITY.COM
ATLAS HOSPITALITY GROUP
4695 MACARTHUR COURT, SUITE 780
NEWPORT BEACH, CA 92660-1862
INTRODUCTION
In 2024 California saw 35 new hotels with 3,798 rooms opened. This was a 34% decline from the number of hotels opened in 2023 (53).
HIGHLIGHTS OF THE 2024 YEAR-END SURVEY INCLUDE:
124 hotels under construction with 16,468 rooms;
1,186 hotels in planning with a total of 153,560 rooms;
The 197-room Chicken Ranch Casino Hotel in Jamestown was the largest hotel to open in the State in 2024, while the AC Hotel in Sacramento and SpringHill Suites Chula Vista Eastlake came in second, with 179 rooms.
Los Angeles County had the highest number of new hotels opened with five and led in number of new rooms (607). Riverside County followed in second with four hotels and 519 rooms opened in 2024.
Los Angeles County leads the State in terms of hotel developments; with 23 hotels equaling a total of 2,833 rooms under construction and 199 projects with 27,457 rooms currently in planning.
LOS ANGELES COUNTY
Los Angeles County had five new hotels with 607 total rooms open in 2024, a 56% room count decrease from the nine hotels and 1,370 rooms in 2023. The 150-room Cambria Suites Burbank was the largest hotel to open in L.A. County.
Los Angeles County has 23 hotels with 2,833 rooms under construction. The 300-room Kali Hotel, Autograph Collection is the largest in progress, and is estimated for completion in 2026. Los Angeles County continues to lead California with 199 hotels that total 27,457 rooms in planning.
SAN DIEGO COUNTY
San Diego County added one hotel, the SpringHill Suites Chula Vista Eastlake with 179 rooms, this
was a 33% room count decrease from the 267 rooms in the two hotels opened in 2023.
There are 13 hotels with 2,799 rooms under construction. The largest is the 1600-room Gaylord Bayfront Resort in Chula Vista, which is also the largest in the State.
San Diego County has 91 hotels with a total of 14,799 rooms in planning.
ORANGE COUNTY
Orange County opened two hotels with a total of 298 rooms in 2024, a 52% decrease from the four hotels and 627 rooms opened in 2023. Hilton at the Source Buena Park was the largest opened in 2024 with 178 rooms.
Orange County currently has the La Quinta Inn & Suites in La Habra, a 91 room project under construction.
Orange County has 69 hotels with 12,136 rooms in planning, slightly below the number of rooms in planning in 2023 (12,551).
RIVERSIDE COUNTY
Four hotels with 519 rooms were opened in Riverside County, the largest being the 168 room Thompson Palm Springs . A significant room count increase from the 159 rooms opened in 2023.
Riverside County has 9 hotels with 1,249 rooms under construction, the largest continues to be the 250-room Hotel Indigo in Coachella.
Riverside County has 123 hotels with a total of 17,735 rooms in planning. The 449-room Hard Rock Hotel in Palm Springs being the largest project in the pipeline.
SAN BERNARDINO COUNTY
San Bernardino County had two hotels with a total of 224 rooms open in 2024, the 128 room Hampton Inn / Home2 Suites by Hilton, Big Bear being the largest . This was a 72% decrease compared to the eight hotels with 789 rooms opened in 2023.
San Bernardino County has eleven hotels with 1,079 rooms under construction, with the 146-room Hyatt Place Ontario being the largest.
San Bernardino County has 46 hotels with 4,432 rooms in planning, a 25% increase in number of rooms in planning as compared to the 43 hotels with 3,547 rooms in planning in 2023.
SAN FRANCISCO COUNTY
San Francisco County, still had no new hotels open in 2023 or 2024, largely due to the overall hospitality and local market conditions.
There is currently only one hotel under construction in 2024, the Waldorf Astoria San Francisco with 169 rooms.
San Francisco County has 44 hotels with 5,115 rooms in planning, only a slight decrease compared to the 50 hotels with 5,915 rooms in planning in 2023.
SACRAMENTO COUNTY
Two new hotels with a total of 282 rooms opened in Sacramento County in 2024, the 179 room AC Hotel Sacramento was the second largest in the state.
Sacramento County shows as having four hotels with 574 rooms under construction, the largest being the 179-room, Residence Inn Sacramento Woodlake.
Sacramento County has 43 hotels with 5,829 rooms in planning, a slight increase compared to the 42 hotels with 5,066 rooms in planning in 2023.
SANTA CLARA COUNTY
Santa Clara County had one new hotel open in 2024. The Home2 Suites San Jose Silver Creek, with a total of 127 rooms. Only a slight increase from the one hotel with 59 rooms that opened in 2023.
The county has four hotels with 557 rooms under construction, the largest is the 254-room Treehouse Hotel in Sunnyvale.
Santa Clara County has 71 hotels with 10,914 rooms in planning, down 12% compared to the 79 hotels with 12,428 rooms in planning in 2023.
SUMMARY
The increased cost of construction as well as the rise in interest rates combined with many lenders pulling away from new hotel construction is continuing to apply downward pressure on new hotel development.
We are also seeing an increase in the number of hotels that have started then stopped construction and are now in default on their loans or in bankruptcy.
We predict that in the near term the future for hotel construction will remain weak as investors focus on purchasing existing hotels at discounts to replacement cost.
