Los Angeles, Inland Empire, San Diego and the Central Coast will see most new rooms
By Michael Stathokostopoulos via CoStar
CoStar Analytics
January 12, 2026 | 12:27 PM
California’s hotel development pipeline is ramping up, with new construction increasingly concentrated in a handful of growth corridors rather than spread evenly across the state.
The latest under-construction data shows the largest room counts for this year and 2027 clustered in Los Angeles, the Inland Empire, the California Central Coast and San Diego, reflecting where developers see the clearest mix of demand depth, year-round visitation and long-term pricing power.
As these rooms become available, hotels will need to keep an eye on absorption and rate discipline.
Los Angeles
Los Angeles leads the region in construction activity, driven by projects tied to major demand anchors and neighborhood repositioning. Notable additions include a 300-room Autograph Collection in Inglewood near SoFi; new hotels in downtown Los Angeles, including Mama Shelter and other lifestyle-oriented developments; and further momentum in the South Bay and Los Angeles North areas.
While several projects skew select-service, the pipeline also includes higher-end bets such as Aman Beverly Hills and a Curio Collection hotel, The Jordan San Gabriel, in San Gabriel, underscoring that capital is still willing to underwrite premium positioning in high-barrier-to-entry nodes.
Inland Empire
The Inland Empire stands out as a second major pipeline hub, supported by logistics-driven weekday demand, Ontario Airport connectivity and a widening mix of leisure-driven resort products in the Coachella Valley. The under-construction list includes dual Hyatt flags near Ontario Airport, multiple limited-service additions in Riverside County and resort-oriented projects such as Montage La Quinta and Dream Palm Springs, signaling confidence that the region can support both value-driven transient demand and higher-rated destination stays.
Central Coast
Coastal leisure areas are also drawing meaningful development. The California Central Coast pipeline spans Ventura and Camarillo, the Monterey area with multiple branded builds and San Luis Obispo County with new supply in Grover Beach and Paso Robles. These projects tend to align with drive-to leisure, shoulder-season events and constrained coastal inventory that supports rate resilience.
San Diego
San Diego’s pipeline is concentrated in the downtown area, Mission Valley and airport-adjacent locations, including multiple new-build flags and a sizable upper-upscale project downtown. That pattern reflects a market where group, leisure and military demand overlap, and where investors continue to position for large-event compression and convention-driven midweek base demand.
Selective development
Elsewhere, new supply is more targeted but still notable. Oakland’s pipeline includes new construction in Alameda near the airport and additional projects in the broader East Bay, while Sacramento’s additions are tied to suburban growth nodes and downtown infill.
Northern California also shows selective development in Silicon Valley and the Peninsula, including a hotel in Redwood City, alongside a small Wine Country pipeline anchored by luxury and upper-upscale projects in Napa and Calistoga.
Most of California’s current properties are slated to finish this year and in 2027, setting up a near-term period where absorption and rate discipline will be crucial, especially in areas with the highest construction share relative to existing inventory.
Reposted with permission from CoStar
