The largest hotel in Orange County is nearly done with the most visible parts of a touch-up worth several million dollars.
The work began this year at the 1,572-room Hilton Anaheim and led to a new presidential suite in June. This month has crews working on a revamp of the Mix Lounge in the lobby.
A new look for the hotel’s Starbucks is next.
Also ongoing: unsexy renovations to its air-conditioning systems and elevators that go beyond nuts and bolts with smart technology that will move guests more efficiently.
“It’s a behind-the-scenes activity you don’t think about,” said Michael Mustafa, marketing director at the hotel. “The elevator shafts are 30 years old.”
The lounge renovations are slated to finish next month, according to Mustafa, who expects the renovations to take another six months or longer.
The latest upgrades come on top of an estimated $60 million in work completed five years ago by its previous owner, Newport Beach-based Makar Properties LLC. Those changes included revamps of rooms and upgrades to meeting space and the health club, as well as a new lobby anchored visually by a massive revolving door.
Makar sold the Hilton in 2012 for an estimated $215 million to a Delaware-based buyer whose backers are said to include investors from the United Arab Emirates.
That price worked out to roughly $137,000 a room when hotels in that area had been selling for about $100,000 a room, according to brokerage data at the time.
The Hilton Anaheim property includes about 140,000 square feet of meeting space and about 1 million square feet overall. It is next door to the Anaheim Convention Center, and some of its rooms overlook the adjacent Disneyland Resort.
Chef’s Table
The presidential suite opened June 16. It is 2,000 square feet of indoor and outdoor space and has various features, including a kitchen, wet bar and two bedrooms.
There is a fireplace outside, and the hotel said the suite and balconies can accommodate 200 people. It’s also on the same level as the hotel’s pool.
Rates start at $1,999 a night, the hotel said.
Mustafa said one advantage to the new suite is views of Disneyland—think nighttime fireworks.
He said another advantage is that it can be divided into two separate suites. The addition of a second “key”—hotel parlance for an additional unit—means the Hilton can still earn revenue on some part of the space or sell both rooms individually when the entire suite isn’t in use.
Airy
The lounge will get a new look on par with treatment similar to other recent hotel renovations in the county.
Current trends are calling for a more open and airy feel to interiors, as shown by recently debuted work at the Balboa Bay Resort and the Island Hotel.
“You take an existing lounge and make it more communicative,” said Mustafa.
The hotel is also renovating its kitchen to allow for seating in the back with the chef.
Dubbed Chef’s Table, Mustafa said up to 15 people can take the space for signature meals, wine pairings and the like.
He compared it to the “behind-the-scenes” vibe of shows on The Food Network and said HGTV’s “Curb Appeal” architect and host John Gidding designed the space.
It’s for corporate and group business, and diners do not have to be guests of the hotel, he said.
The last component of the renovations is a touch-up of the Starbucks.
“Ten years ago, they didn’t have the same model they do now,” he said. “We need to bring it current, and we have the space to expand.”
Back From Recession
Mustafa said the renovations come as a result of increased travel to the area.
He said 2007 was a “pinnacle year” in the hotel industry; it was before the 2008 real estate crash trashed travel budgets for tourists and business travelers.
Mustafa said growth in occupancy and room rates in the past 18 to 24 months has brought the Hilton back to that pre-crash peak.
Hotel industry researcher STR Global in Hendersonville, Tenn., expects a 1.4% increase in occupancy nationally to 63.1%, a 4.2% boost in average daily rates to $115, and a 5.7% gain in revenue per available room to $72.55.
Next year’s numbers are projected at 63.5%, $120 and $76, respectively, the company said.
Orange County year-to-date totals through May are even stronger: 75.5% occupancy and a daily rate of $130.
Mustafa declined to discuss specifics on Hilton Anaheim’s performance but said the hotel is in line with industry averages.
A search for rooms at its website showed a price range of $129 to $204, depending on size and view.
