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 California's Orange County 50 Largest Hotels Report
a 2% Growth in Meeting Space in 2004 - Mainly
a Result of Renovations, No New Hotels

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By Sandi Cain, January 2005
Orange County Business Journal Staff
  • Disneyland Hotel: No. 1 with 136,000 square feet of meeting space
  • Meeting space in Orange County is in a holding pattern.
The county�s 50 largest hotels with meeting space reported a 2% jump in space in the past year, mainly as a result of renovations and re-configurations that added a combined 25,374 square feet of space.

That brings the total of indoor meeting space at the county�s largest hotels to 1.15 million square feet, according to this week�s Business Journal list. The list ranks hotels based on the square footage of their permanent, indoor meeting space.

The small increase reflects the reluctance of hotel developers to move ahead with building plans amid a crowded field and modest economic recovery. No new hotels have opened in OC in the past year with large enough facilities to qualify for the list.

Only one such hotel�the Doubletree Guest Suites in Anaheim�is under construction and expected to open in 2005.

The small gain in space also reflects an industry trend toward smaller meetings and more educational sessions that demand classroom space, but not always large ballrooms.

Still, the amount of space needed to make the list this year rose to 5,412 square feet from 5,061 a year earlier. That�s double the amount of space that earned a spot on the list in the mid-1990s.

Renovations accounted for the only changes in the amount of meeting space at the largest 10 meetings hotels.

Disneyland Hotel, which completed a renovation of its exhibit hall and ballroom last fall, retained its long-standing grip on the No. 1 spot on the list with 136,000 square feet. (Last year, during the renovation, the hotel reported 133,359 square feet�still enough for the top spot.)

Group business for Disneyland Hotel remains strong for 2005, according to Robert Donahue, director of sales for Walt Disney Co.�s three Anaheim hotels.

�Group trends are positive for all three hotels compared to last year, which also was a good year,� Donahue said. �The corporate market is strong and we�re pleased with that.�

Donahue said the resort is continuing to seek meetings business, despite an expected influx of tourists for Disneyland�s 50th anniversary, a yearlong event that officially launches in May.

The Hilton Anaheim�the largest hotel in the county by rooms�retained its No. 2 ranking with 94,695 square feet of meeting space.

There only were two changes in position among the 10 largest hotels on the list.

The Hyatt Regency Irvine, which boosted its space to 36,000 square feet from 32,000 a year ago, moved up to the No. 7 spot, dropping the Four Seasons Newport Beach to No. 8.

Big Jump for Paradise Pier

Disney�s Paradise Pier Hotel, which completed a makeover last summer, jumped eight spots to No. 10 by adding roughly 10,000 square feet of meeting space and boosting its number of meeting rooms to 15.

In all, the largest 10 meetings hotels now account for 576,759 square feet�roughly half�of the space among the 50 hotels on the list.

Nine hotels increased their space in the past year.

The biggest gain was at Paradise Pier, which increased its space by 48%. The second biggest jump was at the Westin South Coast Plaza, which moved up a notch to No. 14 by increasing its space 15% to 24,000 square feet, also due to a renovation.

Other hotels adding space were the No. 13 Hilton Irvine/Orange County Airport and No. 17 Doubletree Hotel Anaheim/Orange County, up 3% each; No. 29 Holiday Inn Buena Park, up 12%; No. 47 Aliso Creek Inn at Laguna Beach (owned by Montage Resort & Spa), up 4% and No. 50 Holiday Inn Santa Ana, up 7%.

One hotel, No. 37 Anaheim Marriott Suites, saw a slight drop in space.

For the most part, the changes were minimal and reflected a trend of converting suites to meeting space or vice versa as market conditions change. As the economy has showed signs of strengthening, so have group bookings, according to hoteliers contacted for this story.

�The first half of 2005 is very strong, but the second half looks weak right now,� said Edd Karlan, director of sales at the Hilton Anaheim.

The same was true for other area hoteliers, including No. 3 Hyatt Regency Orange County, No. 4 Anaheim Marriott and No. 21 Coast Anaheim Hotel.

Anaheim Market Share Leader

Market share within OC remained the same as in 2003. Anaheim leads the county in space, with 407,812 square feet, or 35% of the total space on the list.

Newport Beach ranks second with 12% of the total, at 134,822 square feet. Garden Grove is third with 10% followed by Irvine with 9%, Costa Mesa with 8%, Huntington Beach with 6% and Dana Point with 5%.

Some softness in convention attendance in the first half of 2004 put a dent in the spillover of so-called citywide conventions that in past years had filled rooms in Orange, Garden Grove and Costa Mesa when large conventions came to Anaheim.

But convention attendance was trending upward in the latter part of the year and 2005 bookings are promising, hoteliers said.

Tim Price, director of marketing at the Anaheim Marriott, said one of the biggest differences between 2003 and 2004 was that convention attendance was stronger and on target with projections.

�In 2003, attendance was 6% below our projections; last year it was 0.6% down,� he said.

Price said the upward trend appears to be continuing this year, except for the fourth quarter.

At No. 11 Crowne Plaza Anaheim Resort, director of sales Dan Fitzgerald said the demand for group business is strong.

�Group business is higher than before Sept. 11,� he said.

PKF Consulting projects overall OC hotel occupancy will increase by 2.9% in 2005, reaching 71.9%. Room rates are expected to grow 3.8% to $104.80.

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Sandi Cain is a freelance writer and contributor to the Orange County Business Journal and meetings industry publications. She specializes in hospitality, tourism and travel. Cain holds bachelor�s and master�s degrees in education from Kent State University in Ohio, where she majored in social studies. A former high school teacher, she has written for niche-market sports publications in the U.S., England and Australia and formerly worked in both the printing and high-tech industries. A Cleveland, Ohio native, Cain hasbeen a resident of Laguna Beach since the late �70s. She enjoys travel, gardening, reading and spoiling her three cats.
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Contact:
Sandi Cain
Laguna Beach CA
949-497-2680
[email protected]

Also See Anaheim Considers Business Improvement District to Fund Convention Center Growth / Sandi Cain / January 2005
Opened in 1962, the Hyatt Newporter Receives $13 million Remodel; Owner Sunstone Gives the 403 room Hotel New Name - Hyatt Regency Newport Beach / Sandi Cain / November 2004
Orange County California Hotels See Little Impact � Good or Bad � from Labor Turmoil in Los Angeles, San Francisco and Atlantic City, N.J. / Sandi Cain / November 2004
Sunstone Hotel Investors, Which Owns 77 Hotels, Files Plans for $400 Million; IPO Will Pay Off $80 million of its Debt with Part of Proceeds / Sandi Cain / October 2004
Anaheim City Officials Lobby Republicans and Democrats for a 2008 Convention; But Whether it�s Worth the Effort is a Matter of Debate / Sandi Cain / September 2004
Tarsadia Boosting Upscale Hotel Holdings With Sutton Place Hotel in Newport Beach Buy / Sandi Cain / August 2004
Anaheim Convention Center Occupancy at Post-renovation High of 81.8%, Future Bookings Solid / Sandi Cain / August 2004
Hotel, Upscale Gym Planned at Summit Complex in Aliso Viejo, California; a 175-room Renaissance ClubSport / Sandi Cain / July 2004
Hotel Design Has Come a Long Way from the Cookie-cutter Days of the 1980s; Designers Aim for Warm, Nurturing Feel Post-Sept. 11 / Sandi Cain / July 2004
Hotel Development in Orange County, California All But Dries Up; Handful of Small Hotels Opens, Little Construction Under Way / Sandi Cain / June 2004
The 6-year-old Orange County (California) Tourism Council May be Victim of Budget Cutbacks / Sandi Cain / June 2004
Long before Walt Disney Bought Land for Disneyland Park in the Early 1950s, Walter Knott Planted the Seeds of the Amusement Industry in Orange County, California / Sandi Cain / May 2004
Cities from Anaheim to Laguna Beach, Rife with New Resorts, Look to Grab Summer Business; Sunnier Outlook Ahead for Summer Travel Season / Sandi Cain / May 2004
Tony Bruno, VP and General Manager of Disneyland Resort Hotels, Maps Out 2004 Changes / Sandi Cain / March 2004
Disney Planning for Big Year in Anaheim Amid Board Drama / Sandi Cain / March 2004
Tourism Industry Rethinks Promotion on Security Issues Data / Sandi Cain / February 2004
Orange County�s 50 Largest Hotels with Meeting Rooms Report 3% Jump in Space in 2003 / Sandi Cain / January 2004
Tale of Two Converntions; Las Vegas Versus Anaheim: Trade Groups Take Opposite Tack in Convention Plans / Sandi Cain / January 2004
Meeting Bookers Optimistic 2004 Will Mark Rebound Despite Potential Hurdles; Attendance Boosts at Recent Conventions Have Made Orange County California Hoteliers Hopeful / Sandi Cain / January 2004
Hotels, Theme Parks in Orange County, California Start Aggressive Push for In-State Visitors During Holidays / Sandi Cain / November 2003
An Oranges to Oranges Comparison; Anaheim and Orlando Share Tourism and Meeting Destination Bent, Differ in Some Areas / Sandi Cain / August 2003
New Coastal Resorts Helped Orange County, California Post Gain in Hotel Rooms / Sandi Cain / August 2003
Orange County California Hotel Building Remains Sluggish; Bright Spot: the Burgeoning Resort Market along OC�s Pacific Coast / Sandi Cain / July 2003
Sunstone Hotel Investors LLC and Tarsadia Hotels Expanding by Going After Weaker Hotels in Key Markets / Sandi Cain / June 2003
Orange County's Travel Agencies Continue to Suffer from a Downturn in Travel / Sandi Cain / May 2003
Hoteliers Worry as War, Economy Hit Bookings; A Weak Tourism Industry Threatens to Get Weaker / Sandi Cain / April 2003
Budget Ax Threatens Orange County's Tourism Comeback / Sandi Cain / February 2003
Pacific Islandia California Inc., Owner of the 489-room Sheraton Anaheim Hotel, Files for Bankruptcy Protection; Bankruptcy Over Dispute, Not Results / Sandi Cain / February 2003
Security Detail; High-Profile Meetings Have Police on Special Alert / Sandi Cain / January 2003
New Hotels, Remodelings Spur Growth in Orange County Meeting Space Amid Slow Recovery / Sandi Cain / January 2003
Security Detail; High-Profile Meetings Have Police on Special Alert / Sandi Cain - January 2003
Tarsadia Hotels Building Residence Inns in Garden Grove, San Diego, Buys the 201-room Crowne Plaza in Las Vegas / Sandi Cain / Dec 2002
Bucking Convention - Anaheim Center Expansion Seems to Pay Off as Other Cities Struggle / Sandi Cain / Nov 2002
Ayres Breaks Ground on L.A. Hotel, Expanding Two Others / Sandi Cain / Oct 2002
Orange County California's Hotels, Convention Center Upbeat Despite New Competition and Weak Economy / Sandi Cain / Aug 2002
Ritz, Surf & Sand, Vie With Beach Resort Newcomers Along California's Orange County Coast; Almost 1,000 rooms Set to be Added / Sandi Cain / Aug 2002
Orange County California's Hotels, Convention Center Upbeat Despite New Competition and Weak Economy / Sandi Cain / Aug 2002
Montage Founder, Alan J. Fuerstman Sees Big Things for Laguna Colony Luxury Hotel, Acquired from Marriott International for $190 million / Sandi Cain / July 2002
Orange County�s $6 billion Annual Tourism Industry Shaking off the Downturn / Sandi Cain / May 2002
The Orange Riviera - New Luxury Hotels and Renovation Projects Transforming OC�s Coast / Sandi Cain / May 2001 
Orange County Hoteliers Hope for a Solid Summer Season to Regain Momentum / May 2002 / Sandi Cain
Hotel Brokers: From Sales to Consultants / Sandi Cain / Jan 2002 
Tourism Officials Focus on Security of Events and Sites as Key to Attracting Visitors / Sandi Cain / Jan 2002 
Orange County Travel Agencies Bear Brunt Last Week, Waiting For Fallout / Sandi Cain / Sept 2001 
St. Regis Monarch Beach Resort & Spa Opening Adds to Competition in South Orange County California / Sandi Cain / Aug 2001 
The Orange Riviera - New Luxury Hotels and Renovation Projects Transforming OC�s Coast / Sandi Cain / May 2001 
Ayres Hotel Group Expands, Rebrands / Sandi Cain / March 2001
Orange County�s Hoteliers Relieved as Anaheim Convention Center Expansion Boosted Occupancy and Rates During Past Year / Sandi Cain / May 2001
Indomitable Disney / Bad News Doesn�t Tarnish the Mouse; Slowing Economy Another Matter /  / Feb 2001 
Orange County Hotels Poised for Meetings Growth; Newcomers Help Bolster Total Space; Disneyland Hotel Still No. 1 / Sandi Cain / Jan 2001 

 


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