Fullerton : Firms Said Interested in Hotel Development

Almost four months after a Texas developer cited a “glut” of hotels in Orange County and bailed out of building a hotel and conference center at Cal State Fullerton, several companies have expressed interest in city development, City Manager Bill Winter said last week.

“We got some good nibbles--maybe even a bite,” Winter said. The interested developers “think it (Fullerton) is a good market potential and a very desirable place to build a hotel.”

Winter disagreed with RJS Development Inc. of Houston, which pulled out of the $15-million project in June, saying the Orange County hotel market is overbuilt. The developer had cited studies pointing to decreased estimates in hotel occupancy and daily rates for 1986.

Winter said he expects Fullerton to attract a new developer for the hotel by January. The pullout by RJS was not the hotel’s first setback. Plans for the 12-story, 200-room hotel previously were halted when a group of students, citing environmental concerns, sued to stop the development.