Posted Aug 18, 2016, 3:22 AM
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Join Date: Sep 2005
Posts: 3,132
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Quote:
Hotel development booming in California
California, like the rest of the country, is in the midst of a hotel building boom, with more than 17,000 rooms under construction and 84,000 more in the pipeline.
The surge in development, following a years-long drought in new hotels, is captured in a mid-year report released by Orange County-based Atlas Hospitality Group, which tracks the hotel real estate sector.
San Diego County leads the state in the number of hotels that have opened so far this year — six — but Los Angeles dominates in the number of rooms under construction, with 6,772 in 37 hotels, reports Atlas. By comparison, San Diego trails far behind with four hotels accounting for 957 rooms in various stages of construction, the largest being a 400-room InterContinental on the downtown bayfront.
“At the end of 2015, the average price per room for hotels sold in San Diego was $197,000, and that is well above replacement cost for select service hotels so that’s why you’re seeing a building boom,” Reay said. “That sort of product is going to cost you about $100,000 to $120,000 per room, so if I’m going to pay $120,000 for a 30-year-old product, I’m going to look for a site where I can build a hotel.”
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http://www.sandiegouniontribune.com/...building-boom/
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