California Hotel Construction Continues Record Pace July 2019


Atlas Hospitality Group recently released its California Hotel Development Survey 2019 Mid-Year.

Thirty-six hotels opened in the first half of 2019, versus 26 in the same period of 2018. The number of hotels under construction increased 28% (from 183 to 234), and the number of new rooms under construction went up 25% (from 25,872 to 32,424).

In planning, the number of new hotels and rooms increased by 19% and 14%, respectively. There were 1,143 California hotels in planning midway through 2019, versus 959 last year. Rooms in planning went from 136,706 to 155,782.

Regional Highlights

> Four new hotels totaling 505 rooms opened in Los Angeles County in the first half of 2019, the largest being the 271-room Santa Monica Proper Hotel.

> Los Angeles County has 42 hotels with 6,377 total rooms under construction. The largest are an AC Hotel and Moxy Hotel in Los Angeles, both 410 rooms.

> Los Angeles County leads the Golden State in the number of hotels (268) and total reported rooms (40,190) in planning, 9% and 7% year-over-year increases.

> San Diego County added five hotels with 860 rooms; the largest was the 302-room Sycuan Casino Resort in El Cajon.

> There are 19 hotels with 2,310 rooms under construction. The 246-room Carte Hotel & Suites in San Diego is the largest.

> The county has 98 hotels (up 17%) and 17,870 rooms in planning (up 5%).

> Two Orange County hotels with 280 rooms opened in the first half of 2019. The larger was the 178-room Hampton Inn & Suites Anaheim Resort Convention Center.

> Orange County has 17 hotels with 3,396 rooms under construction. The largest continues to be the 613-room Westin Anaheim Resort.

> Orange County has 67 hotels (up 6%) and 10,499 rooms (down 2%) in planning.

> Three hotels totaling 627 rooms opened in San Francisco County in the first half of 2019. The largest was a 230-room Hyatt Place in San  Francisco.

> Four hotels with 846 rooms are under construction. The 250-room Marriott SoMa Mission Bay in San Francisco continues to be the largest.

> San Francisco County has 52 hotels and 7,493 rooms in planning, 27% and 21% increases, respectively.

> The 124-room Hilton Garden Inn Sacramento Airport Natomas opened.

> Sacramento County has nine hotels with 1,045 rooms under construction. The largest is a 170-room Hyatt Centric in Sacramento.

> Sacramento County has 32 hotels (up 14%) with 4,191 rooms in planning (up 20%).

The Atlas Hospitality Group California Development Survey 2019 Mid-Year shows new records for the number of hotels and rooms opened and under construction within a six-month period. 2019 is on pace for the highest number of California hotels and rooms to open in one year since Atlas started tracking development over two decades ago.

Although construction costs continue to rise, very little seems to be dampening the appetites of developers and, more importantly, lenders for new hotel product.

For  a copy of the Atlas Hospitality Group California Development Survey 2019 Mid-Year, please send a request to:


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