New Hotel Targets Chinese Travelers

Chinese developer Hazens Group is building a new Sheraton Los Angeles San Gabriel in the San Gabriel Valley, and plans to target Chinese travelers to serve the growing Chinese community and culture in Los Angeles. The hotel is scheduled to open in January and will accept its first guests in February. We sat down with Wanda Chan, General Manager for Sheraton Los Angeles San Gabriel, to find out more about the project, why it is targeting such a specific demographic and get her opinion on the hotel market.

GlobeSt.com: Why was the San Gabriel Valley an attract location for a hotel development?

Wanda Chan: San Gabriel Valley was chosen based on the economic growth and rich Asian culture.  The city of San Gabriel is home to nearly 40,400 residents which 60.7% is of Chinese decent in addition to San Gabriel ranking within the 5 top cities in Los Angeles County with highest percentage of Asian residents.  Industries such as medical, technology and manufacturing continue to drive the economic future of San Gabriel. LAX will continue to be a driving force in the San Gabriel market, bringing 75 million visitors to Los Angeles. LAX is the busiest airport on the west coast delivering over 22 million international visitors. Chinese tourists account for more than one million visitors in Los Angeles and are the top target audience in San Gabriel.  Looking towards 2018, Los Angeles RevPAR is expected to grow 3.7%. This is better than the rate of growth in 2017.  Prospects for RevPAR growth in the lower-priced segment (positive 4.5%) are better than in the upper-priced segment (positive 2.9%). Los Angeles market occupancy levels are expected to range from 80.5% to 81.3% during the 5-year forecast period.  CBRE forecast for the LA upper tier hotels shows an annual occupancy of 82.1% (+.05%) and ADR for $232.89 (+2.2%) for an overall RevPAR of $191.23 (+2.7%).