Is San Diego headed for a luxury-hotel glut?
Question: Is San Diego heading for a luxury-hotel glut?
Bob’s Answer: NO
There are fewer luxury hotels in San Diego as a percentage of total hotels than Los Angeles and San Francisco, and San Diego pales in comparison to pipeline deals in Los Angeles’ downtown. Most new hotels entering the market are focused-service hotels. These hotels, in many cases do not have room-service, restaurants or significant meeting space.
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Further, many planned hotels will never get built due to challenges with debt, equity and timing.
