Los Angeles Leads the Nation in New Hotel Room Construction
According to the Lodging Econometrics Hotel Construction Pipeline Trend Report, Los Angeles began 2022 with a total of 120 projects and 19,815 rooms in the construction pipeline. That makes Los Angeles the most prolific spot in the country for new hotel construction, ahead of the Atlanta market, with 133 hotels and 17,593 rooms, and the New York City market, with 121 hotels and 19,303 rooms.
Greg Norris, principal and founder of QuickDraw Fund Control, is bullish on the future of the L.A. market. “QuickDraw has clients with big plans for both ground-up and renovation hotel projects in 2022 through 2024. After a long COVID-19 winter, it’s wonderful to see the hospitality space roar back to life!”
Currently, 22 hotels and 3,630 rooms are actively under construction in Los Angeles, while 41 hotels and 6,278 rooms are scheduled to start construction in the next 12 months, and 57 hotels and 9,907 rooms are in the early planning stage.
Top hotel brands expanding in the Los Angeles market include Hyatt Hotels and CitizenM Hotels. The majority of new hotels slated for construction are in the four-star sector, but more than a dozen five-star luxury properties are also in the pipeline.
At the close of fourth quarter 2021, Los Angeles ranked second for new hotel openings, with eight hotels and 1,323 guest rooms. New York City took first place, with eight new projects totaling 1,958 rooms.
Lodging Econometrics predicts that the Los Angeles market will drop to fourth place for new hotel openings in 2022, with 19 hotels and 3,081 rooms.
Forecasts for 2023 remain bright, however, as Lodging Economics anticipates the opening of another 11 hotel projects with 1,367 rooms. Among the hotels slated for 2023 is the Hotel Schrader, a 191-key property that will occupy an 11-story tower. Amenities will include retail space, a restaurant, a café, and a rooftop pool and deck with fantastic views of the Hollywood Hills.
QuickDraw is the go-to fund control partner for residential, commercial and industrial construction projects of every size, style and price point. From coast to coast, QuickDraw works to make the fund disbursement process a positive experience for all, with an array of related services, including: Construction Site Inspection, Cost Review, Loan Portfolio Analysis, Photo Documentation and Custom Reporting.