Construction of a new high-rise addition to Universal City’s Hilton hotel has been approved by the Los Angeles Planning Commission, clearing a major hurdle for the long-planned expansion.
The decision comes as Universal Studios and other popular tourist destinations in the region remain bright spots for hoteliers, even as other lodging facilities in California’s urban centers struggle to fill rooms.
The commission last week recommended the City Council approve an 18-story addition to the 24-story Hilton Los Angeles/Universal City hotel, which opened in 1984. The addition would have 395 rooms, bringing the total between the two buildings to 890, making the Hilton one of the largest hotels in Los Angeles County.
Hotels near popular leisure destinations such as Disneyland and Universal Studios Hollywood are doing better than California hotels catering to business travelers and meetings, said Alan Ray, a hotel consultant and president of Atlas Hospitality Group.
“Large full-service hotels have been significantly impacted by the work-from-home movement and reduced convention and meetings business,” Ray said.
Universal City is a “fantastically doing well little island,” with Hilton’s average occupancy rate of 92 percent last year, he said.
“I don’t know of any other hotel that offers that kind of stay at a similar price point,” he said. “It really speaks to the strength of the location and the strength of the brand.”
“It just makes sense to add some rooms,” said Ray, who is not involved in the planned development.
The expansion is being proposed by Sun Hill Properties, which owns the Hilton-operated Universal City Hotel.
Sun Hill managing director Mark Davis said the company was “extremely pleased” to have received planning commission approval.
“We remain confident in the future of Los Angeles and the continued growth of a key demand driver: Universal Studios theme park, which is a key tourist magnet for the City of Angels,” he said in a statement.
If approved by the City Council, construction would take about 30 months, according to city documents recommending the development.With the Hilton expansion, the property’s previous owners estimated at the time that more than 70 percent of their guests came to visit the $500 million Universal Studios Hollywood theme park, whose centerpiece is the Wizarding World of Harry Potter.
The expansion’s design by architecture firm Ankrom Moisan also calls for a spa, three restaurants, indoor and outdoor bars, two swimming pools, a lobby connected to the existing hotel building and an expansion of the existing three-storey car park.
Sun Hill’s expansion plans, which are expected to be completed in time for the 2028 Olympics, come amid high interest rates and smaller deals across Los Angeles County and the state as well, which are holding back the market, according to a recent report from Atlas Hospitality.
times staff Writer Caroline Petrow Cohen contributed to this report.
