Chinese developerHazens Group is building a new Sheraton LosAngeles San Gabriel in the San Gabriel Valley, and plans to targetChinese travelers to serve the growing Chinese community andculture in Los Angeles. The hotel is scheduled to open in Januaryand will accept its first guests in February. We sat down withWanda Chan, General Manager for Sheraton LosAngeles San Gabriel, to find out more about the project, why it istargeting such a specific demographic and get her opinion on thehotel market.

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

Wanda Chan: San Gabriel Valley waschosen based on the economic growth and rich Asian culture. The city of San Gabriel is home to nearly 40,400 residents which60.7% is of Chinese decent in addition to San Gabriel rankingwithin the 5 top cities in Los Angeles County with highestpercentage of Asian residents. Industries such as medical,technology and manufacturing continue to drive the economic futureof San Gabriel. LAX will continue to be a driving force in the SanGabriel market, bringing 75 million visitors to Los Angeles. LAX isthe busiest airport on the west coast delivering over 22 millioninternational visitors. Chinese tourists account for more than onemillion visitors in Los Angeles and are the top target audience inSan Gabriel. Looking towards 2018, Los Angeles RevPAR isexpected to grow 3.7%. This is better than the rate of growth in2017. 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 expectedto range from 80.5% to 81.3% during the 5-year forecastperiod. CBRE forecast for the LA upper tier hotels shows anannual occupancy of 82.1% (+.05%) and ADR for $232.89 (+2.2%) foran overall RevPAR of $191.23 (+2.7%).