SAN CLEMENTE : Moratorium Asked on New Lodgings

Citing the recession and intense competition, a newly formed association of 16 local hotel and motel operators is seeking at least a five-year moratorium on the construction of new lodgings in town.

In a recent letter to Mayor Joseph Anderson, the San Clemente Hotel and Motel Assn. said the local lodging industry is “deteriorating,” mainly because of the recession and a supply of rooms that far exceeds demand most of the year.

“We, as hotel and motel owners, are experiencing difficult times coping with the current economic situation, which, if the trend continues, could result in financial problems for all of us,” the association members wrote in the letter.

According to a recent city survey, occupancy rates at local hotels have fallen to about 50% on weekdays, reflecting the “severe recession” gripping both the regional and national lodging industry. Most local hotels and motels need an occupancy rate of at least 65% to break even.

Already, the largest hotel in the city, the Ramada Inn, is operating under the protection of the U.S. Bankruptcy Court. City Council members have said they would support a proposal by San Clemente Senior Services to convert the inn into low-cost senior citizen apartments.

The moratorium proposal comes at a time when several groups in town are proposing luxury hotel development in the seaside Pier Bowl area. Sites include the aging Beachcomber Apartments Motel and the grounds of Casa Romantica, the mansion built by city founder Ole Hanson in the late 1920s. There is also informal talk of building a resort at the Shorecliff Golf Club.

“The supply of rooms is so high now,” San Clemente Travelodge owner Dhiraj Lal said. “What is the point of having a new hotel come in?”

Anderson said he is treating the moratorium proposal “very cautiously.”

“I’m not sure that’s the message or signal we want to send to the business and investment community in these difficult economic times,” he said.

Also, some of the proposals being made in town involve building a regional resort, unlike anything in San Clemente, Anderson said.

Councilman Scott Diehl said he would also be reluctant to enact a moratorium.

The City Council is expected to consider the proposal in September.