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Planning commission directs staff to require market analysis for future hotel entitlements

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Summary

Planning commissioners voted to require a market analysis to be submitted with any future entitlement package that includes new hotel development, after staff reported city-specific hotel data was not available and noted an estimated regional/local occupancy rate of about 63%.

The Planning Commission voted to require that a market analysis be submitted with any future entitlement application that includes a new hotel development, following a staff presentation on hotel-occupancy data.

Planning staff told the commission city‑level hotel occupancy data were not readily available and that the most accessible figures are at state, county and regional levels. Staff reported the average hotel-occupancy rate in the city area is approximately 63% based on available regional sources but cautioned that occupancy varies widely by hotel type (extended-stay, economy, business-class, resort) and location. Staff recommended that, because of these variations and the costs of assembling comprehensive city-wide hotel data, a market analysis be required for each specific hotel project brought forward to the commission.

Chair Kurth moved that the city request a market analysis be submitted with any future entitlement application that includes a new hotel development; Commissioner Marshall seconded. Roll-call votes were yes from Commissioner Marsh, Commissioner Marshall and Chair Kurth; Vice Chair Mason and Commissioner Thomas were absent. The motion passed.

Why it matters: A required market analysis will provide project-specific information — including occupancy, segmentation by hotel type and local market conditions — for commissioners to use when reviewing future hotel entitlement applications. Staff recommended the requirement to ensure comparable, project-relevant data accompanies hotel proposals.

The city will incorporate the market-analysis requirement into its application submittal expectations for future hotel projects and staff will advise applicants accordingly.