|
|
|
...
Hotel Scene in Orange Country, California |
.
By Sandi Cain, May 2005
Orange County Business Journal Staff It�s the same story on the hotel scene for a second year in a row: No new hotels on the list of Orange County�s 50 biggest. Total employment at the top 50 hotels was flat in the past year at 14,421, just 11 fewer workers than a year earlier. Total rooms on this week�s Business Journal ranking was 20,849, down slightly from 20,914 in 2004. Hotel renovations cut slightly into this year�s room count. The consistency reflects the uncertainty that�s gripped the hotel industry since tourism fell off after the 2001 terrorist attacks. The good news for the industry is that it�s turned around from the three-year slump. Many hoteliers have been in a holding pattern, waiting for visitor numbers to head north before making changes. Now there are several hotels that are under way with big renovations. And there�s one sizeable hotel in the works, too. The list, which ranks the county�s largest hotels by number of rooms, last was published in August 2004, so year to year comparisons reflect only a nine-month period. One of the few changes in ranking on this year�s list dropped the Newport Beach Marriott a spot to No. 7. The Marriott is in the midst of a $60 million renovation that will reduce its room count by 9% to 532 by the end of the year. Of the 46 hotels that provided employment figures, eight reported an increase, eight a decrease and 30 no change. Of those that increased their employee count, two�No. 5 Hyatt Regency Orange County in Garden Grove and No. 33 Four Seasons Hotel in Newport Beach�did so by a double-digit percentage. �Business definitely improved in 2004,� said Hyatt general manager Allan Farwell. He said summer business looks very good and the hotel still is hiring. �We�re always looking for more people,� he said. Hotels with double-digit percentage declines were No. 42 Holiday Inn Hotel & Suites in Anaheim, down 20%; No. 16 Sutton Place Hotel in Newport Beach and No. 24 Anaheim Marriott Suites in Garden Grove, down 14% each; No. 34 Embassy Suites Irvine, down 11%; and No. 1 Hilton Anaheim, down 10%. In all, the largest 50 hotels accounted for 20,849 hotel rooms�37% of the 55,734 total hotel and motel rooms in the county. Anaheim has 41% of the total rooms on the list and 37% of all available rooms in OC. The 16 hotels in Anaheim alone accounted for 5,130 jobs�36% of the total�including Business Journal estimates for three Anaheim hotels. Newport Beach ranks second in market share with six hotels on the list and 2,254 rooms. Irvine also has six hotels on the list, but it has fewer rooms, at 2,190. Garden Grove holds the No. 4 spot in market share with 1,784 rooms. Costa Mesa ranks fifth with 1,649. Occupancy at the largest hotels averaged 70%, up from 68% a year ago. The average starting nightly rate was stuck at $159. That�s higher than the countywide average of $115 as reported by PKF Consulting. Hoteliers believe rates will improve this year, based on increasing consumer confidence concerning travel and Disneyland�s 50th birthday, which already has generated a bump in room demand. �Bookings are very strong for summer,� said Jeff Protzman, general manager of No. 15 Doubletree Hotel Anaheim/Orange County. �We�re seeing Disney�s marketing come to fruition. We�ve got a double-digit increase over last summer.� Starting nightly rates for the 47 hotels that provided prices range from a low of $54 at No. 31 Anaheim Plaza Hotel & Suites in Anaheim to $495 at No. 41 Montage Resort & Spa in Laguna Beach. Sixteen hotels have starting rates under $100, with 10 of them in Anaheim. Of the 29 hotels that reported occupancy rates, 13 reported rates at or above the countywide average of 71.1%, while 16 reported lower occupancy. Two hotels changed hands in recent months: the Hyatt Regency Orange County, which was sold to Ashford Hospitality Trust by Newport Beach-based Tarsadia Hotels; and the Sutton Place Hotel, set to be bought by San Clemente-based Sunstone Hotel Investors, also from Tarsadia. Sunstone plans to hire Canada�s Fairmont Hotels & Resorts to manage the hotel, which will change names to Fairmont Newport Beach. There will be at least one new hotel on next year�s list. The 252-room Doubletree Guest Suites in Anaheim is set to finish construction by the end of the year. It would debut tied at No. 47 if it already were open, bumping No. 50 Wyndham Hotel Orange County Airport in Costa Mesa off the list. One industry trend reflected in this year�s list shows the rapid pace of technology changes. Only 21 hotels on the list offered high-speed Internet access to guests in 2001. This year, 46 offer wireless Internet access, up from 38 a year earlier. We again asked hotels if they charge a resort fee�a charge found at an increasing number of full-service and resort hotels. The fees are said to cover business improvement district charges, access to special amenities such as spas or fitness gyms, or flat fees for long-distance and Internet access. The resort fees are controversial in some sectors of the hotel industry. Nevertheless, 12 of OC�s largest hotels charge a resort fee, up from nine a year ago. The Anaheim/Orange County Visitor & Convention Bureau is working to create a new Business Improvement District to help fund meeting space renovations at the Anaheim Convention Center. The improvements could mean more special fees at area hotels. Other notable trends: Ten hotels have full-service spas. And 18 will let you bring Fido along if you must have your pets when you travel. ---
|
###
Sandi Cain Laguna Beach CA 949-497-2680 [email protected] |