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. 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%).

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

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

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.