Hotels are moving fast on expansion and remodeling plans.
It’s a welcome change for them from the tourism downturn spurred by the 2001 terrorist attacks, which all but cut off growth or big improvements at Orange County hotels.
About a quarter of OC’s largest hotels on this year’s Business Journal list (see page 34),along with other hotels in the area,have launched renovations in the past year or are getting started on them now.
An improved hotel market is providing the impetus for the flurry of activity.
The typical U.S. hotel saw profits grow by about 11% in 2004, according to data from PKF Consulting’s hospitality unit.
That’s a dramatic turnaround from the 36% decline in profits that was typical for 2001-2003. PKF projects profit growth of 14% to 16% in 2005.
Demand for hotel rooms was up 4% through February, versus a year earlier. Domestic air travel increased by a similar amount and international travel was up by 11%.
With those trends expected to continue through the rest of the year, hoteliers have been spiffing up their hotels.
Here’s what some of OC’s largest hotels have done in the past year, or are planning.
Ayres Hotel and Suites, Costa Mesa, changed its name from Country Inn and Suites as part of a company rebranding. The hotel also remade its guest rooms with new furnishings and high-speed Internet connections.
Coast Hotel Anaheim is set to begin a $47 million renovation in July that will include another 7,200 square feet of meeting space, a new restaurant and lounge, upgraded lobby, a fitness center next to the pool and a business center. Guest rooms will get new furniture, bathroom fixtures and high-speed Internet service. The hotel will be renamed Sheraton Anaheim Hotel at the Anaheim Resort.
Disneyland Hotel in Anaheim completed an overhaul of its grand ballroom last summer. The remake included upgrades in the exhibit hall and some pre-function space, wireless Internet access in meeting rooms and high-speed Internet access in rooms.
Disney’s Paradise Pier Hotel put the finishing touches on a makeover last summer that links the theme of the hotel and its rooms to the Paradise Pier boardwalk section of California Adventure. A pool slide also was added and wireless Internet access was installed in public spaces and meeting areas.
Doubletree Hotel Anaheim/Orange County in Orange just completed a $6 million renovation that spruced up all guest rooms and public areas. The top three floors have been turned into concierge floors with a lounge. The fitness center and swimming pool also were upgraded. Its new bistro-style restaurant, Trofi, opened last week.
Four Seasons Hotel Newport Beach opened a 4,000-square-foot spa in March as the final phase of a $20 million renovation. The spa has nine rooms.
Hilton Waterfront Beach Resort in Huntington Beach remodeled its Palms restaurant to give it a more upscale and modern feel as well as a new menu. Next up: The resort will remake its outdoor dining and areas around the pool to take advantage of its beachfront.
Holiday Inn Costa Mesa added free high-speed Internet access to guest rooms and public areas early this year.
Hyatt Regency Irvine opened its revamped restaurant last summer. The restaurant, renamed 6ix Park Grill, is open all day. It was the last phase in a $14 million makeover.
Hyatt Regency Orange County in Garden Grove completed a $7.5 million renovation of its south tower guest rooms in December, adding the new “Hyatt Grand Beds” to rooms.
Irvine Marriott just finished a $7.5 million renovation to its rooms, an expanded concierge lounge and a fitness center. Room up-grades included new Mar-riott beds and expanded shower stalls.
Newport Beach Marriott is in the second and final phase of a $60 million renovation that will be completed by year’s end. When complete, the hotel will be renamed the Newport Beach Marriott Hotel & Spa and have 532 rooms, 20 suites, five penthouses, a 14,000-square-foot spa with 16 rooms, a hair salon, a spa pool, an 8,000-square-foot lobby, lounge pool and bar, and a new restaurant. It will have 41,000 square feet of meeting space.
Ritz-Carlton Laguna Niguel in Dana Point is nearing the end of its $40 million remake. Changes include more windows, an outdoor dining area off a new restaurant and a new lobby and oceanfront lobby bar. A spa and oceanfront fitness center were added. All 393 rooms are getting a facelift, with plasma TVs, DVD/CD players and recessed lighting part of the mix. The Ritz-Carlton is adding a new 3,200-square-foot, two-story event space with a terrace on top.
Sheraton Anaheim began an $8 million renovation last week that will include an exterior makeover, new roofed entrance, a deli and gift shop, among other additions. The hotel plans to demolish the old Station Hotel and Spaghetti Station buildings for employee parking.
Sutton Place Hotel in Newport Beach is waiting for San Clemente-based Sunstone Hotel Investors to close a deal to buy the hotel and turn management over to Fairmont Hotels. The hotel will be renamed The Fairmont Newport Beach. Once the deal is wrapped up, Sunstone is poised to spend $22 million on renovations.
Westin South Coast Plaza in Costa Mesa completed its $750,000 Westin Workout Fitness Center in March. The center has new equipment, flat-screen TVs and entertainment on cardio equipment. The hotel plans to add a junior ballroom, renovate meeting space, the lobby, lobby bar and reception area, and add a gazebo for weddings.
