Number of New Hotel Rooms in State Falls

The number of new hotel rooms opened in California last year fell by 30% as developers faced growing competition from condominium and shopping center builders, according to a survey released by Atlas Hospitality Group.

Orange County saw a 65% decrease in rooms completed and San Diego County was down 56%. Los Angeles County was an exception, with 132% more rooms opening last year than in 2003. Riverside County saw a 181% increase in rooms.

Reduced competition from new hotels entering the market suggests that average daily room rates and occupancy will probably rise for at least the next two or three years, said Alan Reay, president of the Costa Mesa-based consulting firm.