Orange County currently has 33 hotel properties in the planningstages, which will add a total of 9,265 rooms. Still, without a lotof new product already in the market, pressure will be on raisingroom rates.
Industry analyst Robert A. Rauch, managing director forInterBank/Brener Hospitality in San Diego, says that Anaheim'sbiggest problem historically has been low room rates for oldproperties that are in inferior condition.
"The product has been tired, worn and not able to drive roomrates," he says. "There has never been a question about demand forrooms in Anaheim. The only question is at what price (room rate)?It's one of the most desirable convention and leisure markets inthe United States."
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