City Council Approves Hotel Incentive Policy To Attract 4-Diamond Properties To Anaheim

The Anaheim City Council voted 3-2 last night to adopt a city-wide Hotel Incentive Policy to encourage the building of 4- and 5-Diamond hotel properties in Anaheim. The policy would provide an annual rebate to new luxury hotels equivalent to 70% of the Transient Occupancy Tax (TOT) generated by the hotel; this assistance would continue to 20 years.  Existing hotels that upgrade to 4-Diamond status will receive a lesser rebate equivalent to 50% of the TOT increment generated by upgrade.

Mayor Pro Tem Lucille Kring and Councilmembers Kris Murray and Jordan Brandman voted in favor of the policy; Mayor Tom Tait and Councilman James Vanderbilt voted “no.”

The incentive agreement for each hotel development participating in this program would have to come before the city council for a vote, per state law.

The new policy comes on the heels of council approval of a $200-million expansion of the Anaheim Convention Center that will significantly enhance the city’s ability to court larger, more lucrative conventions and conference, and to host shows simultaneously.  Adding more luxury hotels to the Anaheim Resort’s two existing 4-Diamond properties (The Grand Californian and the Disneyland Hotel) will make it an even more attractive destination and strengthen the ability of the Anaheim/OC Visitor and Convention Bureau to bring convention business to Anaheim. The cumulative impact is even greater visitor spending and tax revenue than would be generated by limited-service hotels.

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