San Luis Obispo | Santa Barbara | Ventura
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$500 COACHELLA VALLEY | COASTAL RESORT | INLAND EMPIRE | LOS ANGELES ORANGE COUNTY | SAN DIEGO | SAN LUIS OBISPO | SANTA BARBARA | VENTURA CBRE Hotels Advisory is a national firm of advisors, industry specialists, and appraisers who provide a full range of services to the hospitality and tourism industry. CBRE HOTELS ADVISORY COMMERCIAL REAL ESTATE SERVICES CBRE Hotels Advisory CBRE, Inc. 400 South Hope Street, 25 th Floor Los Angeles, CA 90071 www.cbrehotels.com October 16, 2019 It is our pleasure to present The 2020 Southern California Lodging Forecast. This forecast has been prepared using our database, as well as information and comments solicited from local hoteliers, hotel owners, hotel developers, representatives of Destination Marketing Organizations, and others. We hope that this document will be helpful for planning and budgeting purposes. To those who have assisted us with this analysis, we extend our sincere appreciation. Without your assistance, this forecast could not have been completed. As with previous forecasts, this year’s document has been divided into the major markets that comprise the Southern California region. These include Los Angeles, Orange County, San Diego, Inland Empire, Coachella Valley, Ventura, Santa Barbara, and San Luis Obispo. Also included is the Coastal Resort market, comprised of hotels on the Southern California coast from San Luis Obispo to San Diego. In addition, it should be noted that certain properties are included in multiple submarkets but are not reported twice in the overall sample for their respective county or area. Each of these markets and the various submarkets therein, will be discussed in further detail in the pages to follow. If we can be of further assistance in the interpretation of this data, please feel free to contact us. Sincerely, CBRE Hotels Advisory Bruce Baltin Brandon Feighner Managing Director Senior Director TABLE OF CONTENTS ABOUT US ............................................................................................................................................... VI CBRE HOTELS ................................................................................................................. VI Advisory.............................................................................................................. vi Advisory Services ............................................................................................. vi Capital Markets Investment Sales ......................................................................... vii Research ............................................................................................................ vii INTRODUCTION AND REGIONAL OVERVIEW ......................................................................................... VIII LOS ANGELES COUNTY ............................................................................................................................ 1 EXECUTIVE SUMMARY ......................................................................................................1 TOURISM INDUSTRY ........................................................................................................2 LAX Modernization ................................................................................................4 Los Angeles Convention Center .............................................................................5 Los Angeles Convention Center Renovation ...................................................6 Additions to Supply ...............................................................................................7 DOWNTOWN LOS ANGELES ...........................................................................................8 Residential Developments ......................................................................................8 The Grand ...........................................................................................................9 City Market .................................................................................................9 Oceanwide Plaza ......................................................................................10 Circa ........................................................................................................10 LONG BEACH ...............................................................................................................11 SOUTH BAY ...................................................................................................................13 LOS ANGELES INTERNATIONAL AIRPORT .......................................................................13 SANTA MONICA ............................................................................................................14 MARINA DEL REY ............................................................................................................15 BEVERLY HILLS/WEST LOS ANGELES ...............................................................................16 HOLLYWOOD ...............................................................................................................19 WEST HOLLYWOOD ......................................................................................................20 PASADENA/ARCADIA/MONROVIA ..................................................................................20 SAN FERNANDO VALLEY ................................................................................................22 THOUSAND OAKS/AGOURA HILLS ................................................................................24 SAN GABRIEL VALLEY .....................................................................................................25 WHITTIER/I-5 CORRIDOR ...............................................................................................25 SANTA CLARITA .............................................................................................................26 SAN DIEGO COUNTY ............................................................................................................................... 28 EXECUTIVE SUMMARY ....................................................................................................28 SAN DIEGO CONVENTION CENTER ..............................................................................28 OFFICE MARKET ............................................................................................................29 SAN DIEGO INTERNATIONAL AIRPORT ..........................................................................29 Visitor Activity .....................................................................................................30 Additions to Supply .............................................................................................32 DOWNTOWN SAN DIEGO/EMBARCADERO ...................................................................32 SAN DIEGO BAY MARKET...............................................................................................33 La Jolla .............................................................................................................33 Mission Bay .......................................................................................................34 Mission Valley/Old Town ....................................................................................35 North City/University Towne Center (UTC)/Sorrento Mesa ..................................................36 NORTH COASTAL MARKET .............................................................................................37 iii TABLE OF CONTENTS I-15/Kearny Mesa ..............................................................................................37 South Bay ..........................................................................................................38 ORANGE COUNTY ................................................................................................................................... 40 EXECUTIVE SUMMARY ....................................................................................................40 ADDITIONS TO SUPPLY ..................................................................................................44 Central Orange County ......................................................................................44 Anaheim and Greater Anaheim ...........................................................................45 Orange County Airport .......................................................................................49 South Coast Metro Market ..................................................................................50 North Orange County ........................................................................................51 Newport Beach ..................................................................................................52 Coastal Orange County ......................................................................................53 COACHELLA VALLEY ............................................................................................................................... 55 EXECUTIVE SUMMARY ....................................................................................................55 Economic Indicators ...........................................................................................55 Employment .......................................................................................................56 Seasonality ........................................................................................................57