Airport Area Hoteliers Upbeat Despite Concerns

Hotel industry executives are optimistic about the lodging future of the Los Angeles International Airport area, in spite of lingering concerns over modest room-rate increases and predominant occupancy by government contractors and airline crews who, for the most part, receive discounted rates.

Their comments were shared at a round-table breakfast discussion hosted by Laventhol & Horwath Real Estate Services at the Sheraton Plaza La Reina for hotel operators, developers, lenders and others.

Focusing on the 25-square-mile area surrounding the airport, L & H senior principal R. Britton Colbert offered figures that confirmed the slow rate increase, but which also showed a steady, ever-increasing basic demand for hotel rooms in the area.

Colbert said it is projected that in the next eight to 10 years another 13 million square feet will be added in phases to the existing 13 1/2 million in the LAX/El Segundo area.

Charles Linquist, chairman of Continental Development Corp., the developer of the existing Continental Park, revealed plans for a 29-acre Continental City, a $750-million project currently being graded.

At present, the airport area has about 10,000 guest rooms, reflecting a 3.2% growth in real lodging demands in the past five years. More recent increase in supply is due to the opening of several hotels, including the Compri and Hampton Inn, with an additional increase expected by 1990 with the opening of the Embassy Suites Hotel.