Los Angeles 06/22
Los Angeles County, AAHOA’s largest member base, was a natural choice for Hotel ROI. Hospitality and tourism in LA County accounts for 678,400 jobs and greets more than 50 million visitors a year who are spending in excess of $18 billion. It has also remained relatively recession proof in recent years due, to some extent, Chinese tourism. Overall, supply is down 0.1 percent, while demand is up 2.4 percent.
The Los Angeles Opportunity
Los Angeles has 1,008 hotels with over 98,000 rooms available. Some of the most popular areas include Downtown, Santa Monica, Beverly Hills, Westwood, West Hollywood/Hollywood, and will continue to see an uptick in supply. LA recorded 47.3 million visitors in 2016, up 4 percent from 2015. Los Angeles International Airport (LAX) saw a record of 80.9 million travelers last year, about a quarter of which were international travelers.
Many attractions drive the local economy, such as Universal Studio’s Wizarding World of Harry Potter which opened in 2016, and of course, the LA Rams breaking ground in November 2016 on a new $2.6 billion stadium in Inglewood. The stadium could potentially host the San Diego Chargers as their home base and local events, such as concerts, holding up to 100,000 people. The stadium is also a prime choice for the 2024 Olympic bid.
Some key projects:
- The 350-room Hotel Indigo Los Angeles Downtown is set to open in March. It will be located two blocks from the convention center and LA Live complex. It is part of downtown’s Metropolis project.
- The 178-room Dream Hollywood will open in February
- The 12-story, 170-room Waldorf-Astoria Beverly Hills will have a fully furnished Presidential Suite boasting 3,215 square feet
- The 226-room Freehand, an upscale hostel, will open with a rooftop pool
Past valuations and transactions that speak to the current opportunity include:
- International investment interest has hit Beverly Hills, West LA and Santa Monica
- About 27 hotels equaling more than $1 billion sold in 2015
- SLS Beverly Hills sold for the highest price at $195 million
- Valuation is expected to grow in 2017 by 4 percent in the Los Angeles/Long Beach market, and 16 percent over the next four years
Because, you will be armed with ideas, solutions and actionable insights that will make an immediate impact on your property. Whether you focus on infrastructure investment opportunities or strategies that force you to “think and act locally” in targeting specific growth sectors, you can take steps that positively influence your ROI.
"LA is one of the most popular cities in the country, with about 50 million visitors every year who collectively spend over $18 billion. Despite those numbers, however, there is still enormous capacity for growth, and the Hotel ROI Conference will show how LA's hoteliers can take further advantage of that capacity and give profitability a major boost." - Hitesh (HP) Patel, AAHOA Treasurer