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Analyst Predicts Increase in Hotel Occupancy for 2001

ORANGE COUNTY, CA-Although there will not be a lot of new product coming on line, the new year looks positive for local hotels--thanks in large part to Disney's new theme park and the expanded convention center.

By Joel Cone | Updated on January 01, 2001

ORANGE COUNTY, CA-The February opening of Disney’s new California Adventure theme park, along with the reopening of the newly expanded Anaheim Convention Center, should bode well for hotel occupancy in 2001.

What projects are either currently under construction, being rehabbed, or planned for next year will tend to be more upper-end hotels commanding higher room rates, says Alan X. Reay, president of Atlas Hospitality Group in Costa Mesa.

“It’s very prevalent in the hotel industry today to rehab an existing property because the cost of rehab is much less than building brand new,” Reay says. “We’re forecasting that sales prices of existing hotels will increase between 7% and 10% next year. There is not a lot of new hotel supply being built in Orange County, which is resulting in increased value for existing hotels.”

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