CHLA Lodging News Sept/Oct 2019

2 CALIFORNIA LODGING NEWS 414 29th Street Sacramento, CA 95816 916-444-5780 www.calodging.com EXECUTIVE COMMITTEE CHAIR Michael Pace Intercontinental Mark Hopkins Hotel VICE CHAIR Bijal Patel, CHA Coast Redwood Hospitality IMMEDIATE PAST CHAIR Scott VandenBerg Hyatt Regency Sacramento SECRETARY/TREASURER Tom Patton, CHA Ramada Santa Barbara GOVERNMENT & LEGAL RELATIONS CHAIR René Boskoff Monterey Marriott Hotel AUDIT & INVESTMENT COMMITTEE CHAIR Laurenne Douglas Pacific Plaza Hotels, Inc. 2019 BOARD OF DIRECTORS Bhupen Amin Holiday Inn Express Hotel & Suites René Boskoff Monterey Marriott Hotel Javier Cano JW Marriott at L.A. LIVE Vipul Dayal Days Inn San Francisco Airport West Laurenne Douglas Pacific Plaza Hotels, Inc. Paul Gibbs Crowne Plaza Los Angeles Airport Ross Gimpel PSAV Terri Haack Terranea Resort Jon Handlery Handlery Union Square Hotel Nic Hockman Disney’s Paradise Pier Hotel Daniel Kuperschmid Manchester Grand Hyatt San Diego Elvin Lai Ocean Park Inn Mark LeBlanc Interstate Hotels & Resorts Hee Won Lim Pacific Palms Resort James Lim Omni San Francisco Hotel RJ Mayer The Mayer Corporation Michelle Millar University of San Francisco Michael Pace Intercontinental Mark Hopkins Hotel Bijal Patel Coast Redwood Hospitality Bimal Patel Hotel Zico Pragna Patel-Mueller Samata Management Tom Patton Ramada Santa Barbara Pam Ryan The Inn at the Mission Chirag Shah AAHOA John Spear Hotel Drisco Jeffrey Thurrell Fisher Phillips Wes Tyler Chancellor Hotel on Union Square Scott VandenBerg Hyatt Regency Sacramento ADVERTISING & DESIGN LLM Publications 503-445-2220  |  800-647-1511 www.LLMpubs.com Design & Layout Sales Representative Stephanie Pendell Katy Patterson katy@llmpubs.com Copyright © 2019. All Rights Reserved MESSAGE FROM THE PRESIDENT Lynn S. Mohrfeld CHLA President & CEO WHILE IT’S TRUE THAT CALIFORNIA’S hotel industry has experienced increased regulation and rising construction costs, it hasn’t slowed the state’s ever-expanding lodging market. Recent news headlines don’t lie—California’s Hotel Market Continues To Trend Upward, California Seeing An Influx Of Hotel Developments Midway Through The Year, Five New Hotels Opened in San Diego Since January, Los Angeles Leads the Way in California Hotel Development—the state’s hotel market is thriving in the face of an increasingly challenging environment. The sixth largest economy, strong business and leisure travel, tax incentives in certain areas, as well as commercial development in key city centers (for example, the expanded convention center in downtown Los Angeles and expanded attractions in Anaheim) have kept California top-of-mind for developers looking for new opportunities. The hospitality industry in California is a juggernaut. The GDP of the California travel industry was $79 billion in 2018, which represents approximately 2.5% of the total GDP of the state, and that figure continues to grow as our industry expands. Further, direct travel-related spending in California totaled $140.6 billion in 2018, a 5.4% increase from the previous year, and direct travel-generated employment neared 1.2 million, a 1.7% increase over 2017 that created 19,000 new jobs. This grow continues with year-to-date RevPAR up 2.3% at $131.05—far out- pacing the national average of $88.45. * At the local level, several cities have experienced even greater RevPAR increases year-to-date: Sacramento is up 7.3% at $94.33, Monterey is up 7.6% at $159.81 and Santa Barbara is up 8.9% at $141.05. * The point is, as the state invests in the travel industry by revitalizing downtown areas in existing destination cities, expanding entertainment centers, attracting new businesses and renovating the old, it will likely remain a profitable venture for hotel developers to break ground in California.  *Figures as of 7/31/19