"The numbers in Southern California are so good that it nowmakes a lot of economic sense to build hotels right now," Reaytells GlobeSt.com. Despite the surge in the number of new hotelsand hotel rooms under way, no new hotels opened in Los Angeles,Riverside or San Diego counties. Reay explains to GlobeSt.com thatthe new construction is a matter of timing.

The surge in new construction contrasts with a dip in the numberof new rooms in the planning stages in some counties. "Most of thenew hotels that are under construction got under way when interestrates were still relatively low, but the movement in interest ratesin the last 12 months will hold back development somewhat," Reaysays. "Even though the numbers are good in terms of average dailyrate and occupancy, the cost to borrow is making it more difficultfor developers," he explains.

Although no hotels opened in the three counties, new rooms underconstruction soared by 551% to 3,045 rooms in San Diego County,climbed by 52.8% to 1,336 rooms in Los Angeles County and increased173% to 898 rooms in Riverside County.