Southern California's Priciest Hotels Are in What 5 Towns?
Jonathan Lansner | The Orange County Register | February 23, 2018 2:52pm
Feb. 22--Where's the most expensive neighborhood to find a hotel room in Southern California?
According to CBRE Hotels' year-end report, the priciest nights in 2017 were in Beverly Hills with an average room rate of $545. The second priciest was Santa Monica at $364 and third was "other West L.A." communities at $318. No. 4 was Newport Beach at $289 and fifth was West Hollywood at $282.
For the budget watchers, the cheapest place to sleep in 2017 was in the South Bay communities where an average night cost $94. Second lowest was San Bernardino at $109. The No. 3 bargain was San Diego's Sports Arena/Old Town neighborhood at $112.
As for overall hotel business conditions, you're seeing more "vacancy" signs at Southern California hotels. But room rates continue to rise at most hotels from San Diego through the desert and the Los Angeles-Orange County coast up to Ventura County, according to CBRE.
Average room rates last year rose in all six Southern California regions tracked while vacancies rates improved in just four ...
Los Angeles County: $208 average room rate last year, up 0.8 percent in a year. Rooms were 82.1 percent full, down from 82.9 percent a year earlier.
Orange County: $188 a night last year, up 2.5 percent in a year as hotels were 80.4 percent full, down from 80.6 percent a year earlier.
Western Inland Empire: $117 a night last year, up 4.5 percent in a year as hotels were 78.1 percent full, up from 77.9 percent a year earlier.
Coachella Valley: $186 a night last year, up 0.4 percent in a year as hotels were 64.5 percent full, up from 64 percent a year earlier.
San Diego County: $187 last year, up 2.7 percent in a year as hotels were 80.9 percent full, up from 80.2 percent a year earlier.
Ventura County: $141 last year, up 0.9 percent in a year as hotels were 79.4 percent full, up from 78.8 percent a year earlier.
At the neighborhood level, CBRE Hotels found room rates last year up in 34 of 44 local markets tracked while vacancies rates improved in 20 markets.
Biggest price hike? Tops was Palmdale/Lancaster up 10 percent to $122 a night. Second, San Bernardino up 6.6 percent to $109. No. 3, La Jolla was up 5.9 percent to $244.
Biggest price cuts? Largest was around the Magic Mountain theme park in Santa Clarita, down 7.3 percent to $141. Next, San Fernando Valley rates fell 3.7 percent to $178; then came "other West L.A." down 3.3 percent to $318.
Fewest "vacancy" signs? Cheaper rooms in Santa Clarita also gave it Southern California's best occupancy rate at 87.5 percent. Next was the LAX neighborhood at 85.3 percent; followed by Marina Del Rey at 85.3 percent.
Most vacancies? It's seasonal tourist towns. Coachella's "Down Valley Resorts" had the lowest occupancy at 61.5 percent followed by Palm Springs at 64.1 percent and Huntington Beach at 68.7 percent;
Biggest cash flow improvement? Using the industry's "RevPar" index, best was Palmdale/Lancaster, up 13.1 percent, thanks to market-leading price hikes. It was followed by Temecula (up 6.9 percent) and Long Beach (up 6.6 percent.)
Worst cash flow performance? Price cutting hurt in Santa Clarita, with RevPar down 8.1 percent. Then came Huntington Beach, down 5.8 percent, and Camarillo, off 4.8 percent.