2016: Year of the Hotel?
2016: The Year of the Hotel for Los Angeles?
Is 2016 the year of the Monkey AND year of the hotel in Los Angeles? According to the Chinese calendar 2016 is the year of the fire monkey with character traits of adventure, ambition, and irritability. Not exactly the perfect mix for hotel developers choosing Los Angeles for their projects. On the ambition side, we’re seeing bids for the 2024 Olympics, a NFL stadium, and public transit initiatives. On the irritability side, we see tax incentives for hotels coming under scrutiny and tighter control by city councils affecting new developments.
What does this fire and ice mix mean for hotel developers? It means the time for developing in Los Angeles and using the tax incentives is now before they become too scrutinized and possibly done away with. Since 2005 it is estimated roughly $508 million has been granted in tax breaks for hotel developments. Each time a new hotel concept meets with the city council, existing hotels rally against it with the always mature “that’s not fair” line under the disguise of “project such-and-such puts other companies at a financial disadvantage.” The mix of ambition and adventure meets with irritability.
Further drawing this boon for hotel developers amidst the increase of temporary-stay attractions is the need for retail, restaurant, and housing in surrounding areas. Mayor Garcetti announced last year his plan to increase housing in Los Angeles by 100,000 units by 2024 with protection against displaced lower-income housings. This is good news for the multifamily and mixed-use developers who plan to place projects in Los Angeles. Again, the adventure and ambition, boom Fire Monkey!
Here’s the flip of the coin: what about the permits, certificates of occupancy, and city council meetings? Although the last decade has afforded incentives to encourage business and development in Los Angeles we must quote our great uncle Emory and say, “times were different then.” That’s right, Uncle Emory, times were different. Development was down, as was the economy so the city of angels created some programs to safeguard jobs.
What does all of this mean? It means it’s the year of the hotel for 2016 as well as developments city-wide in Los Angeles. However, special attention to permits, entitlements, and city councils will be as important as ever.
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About Us: Permit Advisors Inc is a nationwide permit expediting, entitlement, and consulting firm based out of Beverly Hills, CA. We have established relationships with municipalities nation-wide and implement time as well as cost-saving strategies to efficiently complete projects. We provide a project management team to ensure every aspect of the project is given specific attention while maintaining open communication between the jurisdiction, consultants, and our clients. We serve retailers, architects, landlords, tenant coordinators, contractors, and franchisees nationwide in the hotel, retail, restaurant, mixed-use, multifamily, entertainment, grocery, and logistical plant development industries. Contact us today for a consultation at www.permitadvisors.com.