Industry Update
External Article19 July 2021

New Hotel Openings In California Are Up, But Hotel Construction Is Down

Pandemic-Related Hurdles Slow New Projects

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California’s hotel development trends are showing the effects of both recovering demand as well as lasting pandemic challenges.

The number of hotels that opened in California in the first half of 2021 increased 46% year over year, but the number of hotels and hotel rooms in construction both dropped by 32%, according to Atlas Hospitality Group’s "California Hotel Development Survey 2021 Mid-Year."

Fifty one hotels opened during the first six months of the year, and the number of new rooms opening doubled compared to last year from 3,500 to 7,168. At the same time, the number of hotels under construction dropped from 194 to 132, and the number of rooms fell from 26,418 to 17,962.

The number of hotels and guest rooms in the planning stage remained stable year over year, growing from 1,240 hotels to 1,246 and from 163,904 rooms to 164,676.

Read the full article at HotelNewsNow (part of CoStar)

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