IRVINE, CA—R.D. Olson Construction recently completed Catherine's Terrace at Descanso Beach Club, a two-story, 12,683-square-foot oceanfront event venue in Avalon, CA, for the Santa Catalina Island Co. The recent project represents a trend that the Irvine, CA-based general contractor is seeing at its hospitality projects—one toward more diverse and upscale resort-style offerings.

This movement is especially evident in hotels' design, event venues, restaurants and common amenities, where architects, designers and general contractors are working together to incorporate high-end amenities, while remaining true to the location's identity, to the benefit of the user. GlobeSt.com sat down with Bill Wilhelm, president at R.D. Olson, to discuss this trend, and additional movements that he is seeing in the hospitality sector.

GlobeSt.com: As a general contractor with several hotels in the works, you are seeing hotel developers integrating resort-quality amenities and features into properties. Why is this growing focus?

Bill Wilhelm: As an industry as a whole, we're seeing that resort is back, and in a big way. Because the economy has improved and customers are able to spend a little bit more money, we're seeing increased traffic at properties nationwide, but especially those in resort locations. As a result, developers are looking to cater to the next wave of leisure travelers by enhancing their current resort-style offerings or exploring new developments in resort areas.

Now more than ever, lifestyle brands are pulling out all of the stops to meet the needs of today's leisure traveler looking for that one-of-a-kind hotel experience. For example, Paséa Hotel & Spa in Huntington Beach, CA, incorporates a stunning design with luxury resort amenities such as a spa, signature restaurant, rooftop deck and bar, geared toward the upscale leisure guests.

Additionally, we are finding that the improved economy is resulting in a resurgence of space for corporate retreats. Companies are looking for spaces that offer both hi-tech meeting areas to convene a larger group, but also provide respite and entertainment for their employees. As a result, event venues must now incorporate high-end amenities, such as ocean-front views and top-line technology, to remain competitive.

GlobeSt.com: So, as event venues and common amenities evolve, are you seeing a trend towards a more diverse range of resort amenities across demographic groups?

Wilhelm: The ramp-up of leisure travel is the thing to get ahead of in hospitality right now. With the economic downturn behind us, the hospitality sector is rushing to take a proactive approach to increasing demand for diverse offerings. We are seeing this trend across sectors. For example, the J.W. Marriott at L.A. Live is about to undergo a $500-million expansion for the “getaway” and corporate traveler, and on the other end of the spectrum Quiksilver looks to be planning a $350-million resort in Palm Desert geared for the multi-generational user.

Across the industry, developers are working to target the next generation of leisure travelers—millennials—by merging some of their digital savvy interests with innovative hotels boasting smartphone check-in, remote offices and communal lounge areas. The industry is making moves to prepare for the next wave of traveler, and everyone is looking to get ahead of that curve.

GlobeSt.com: As you work with developers and designers to bring projects to the next level in terms of upscale offerings, do you find that there are competing pressures to fit in with the areas' current aesthetic, yet contribute to the evolution of the region?

Wilhelm: Absolutely, and locals understand that it is a balance. Developers' increased attention to their project site and the vibe of its environment helps to ease that tension. Residents and local businesses benefit from improvements, but it is also important to preserve what makes a certain site unique or special. Some of the best resort or venue locations are often those with a rich history and strong local presence, so it is important to integrate that into the project.

At Catherine's Terrace, this balance meant building a venue with a design that brings something entirely new to Catalina Island, yet fits its Descanso Beach location and complements existing buildings along Avalon's waterfront. We added new banquet and event facilities that will attract new traffic and economic activity to the destination island, but we left some of the area's existing features like the casual beach bar and boardwalk to keep the area's identity intact. Adding “the luxury factor” was encouraged as long as it was not in exchange for any of the existing, valuable charm of the area.

GlobeSt.com: Are you seeing developers work to incorporate the local geography into new projects? Does this contribute to the “resort-feel” factor of a property?

Wilhelm: Assessing the geographic area and the local community offers valuable insight into why people travel to that specific location, and what they will be looking for when they arrive. Developers are focusing on preserving the specific area's assets by designing to the hotel's or venue's environment. They are taking the question of “What sells?” and expanding it to, “What about the new image of this area will sell?” or “What qualities does this area have to offer, and how can we serve this up for our guests?”

So, whereas before, a hotel and its surrounding vineyard may have operated in silos, now the hotel offers up a nature-inspired spa experience, a wedding venue, wine tasting and five-star dinners with local wine pairings at its signature restaurant, to cater to this class of traveler.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.