Orange County has seen a recent spike in hotel growth throughout 2016, so what does 2017 have in store for us?
Hotel development in Orange County saw another year of growth and development as many properties opened their doors, changed hands in ownership, or underwent massive renovations in order to become appealing once again.
Seven hotels opened in Orange County, and of those seven, four were constructed in the Anaheim Resort District.
The big hotel deals included the 306-room Hilton Irvine/Orange County Airport hotel that sold for $80 million and the 224-room Crowne Plaza Costa Mesa, which went for a grand total of $37.5 million.
So what does 2017 have in store for Orange County? Well, there are eleven (11) hotels that are scheduled to open next year as they expect tourism to continue its upward trend.
For many years, the hotels in the area usually sold for below the replacement cost, so the incentive to build new or finance such projects was essentially non-existent. But due to this new jump in construction of hotels in Orange County and throughout California, it made it more viable to look at adding new rooms for hotel owners instead of creating brand new hotels from the ground up.
47.4 million people visited Orange County in 2015, an increase of 2.6 percent. Tourists to these areas spent $9.8 billion–an increase of 4.7 percent, and generated $894 million in state and local tax revenue.
Renovated and new hotels are a sign of an up and coming city that is experiencing a tourist boom. Orange County is such a city and area. Make sure that you are able to enter this relatively untapped market before it is too late and installing a hotel in that area becomes too expensive and impractical. Renovate your property with hospitality construction services from Parkwest General Contractors. Contact us to build your business.