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Developers get extension
Slow economy plays a role in council’s decision to give project to expand the Hotel Amarano some more time.
By Christopher Cadelago
CITY HALL — In a nod to the downtrodden economy, the City Council on Tuesday granted a three-year extension to developers seeking to expand Hotel Amarano, agreeing that it would be unfeasible to expand the luxury facility by 32 guest rooms and an outdoor swimming pool as occupancy rates continue to plummet.
Formerly the Graciela Burbank, the 99-room full-service boutique hotel, is in the Media District across the street from Warner Bros. Studio Ranch and draws much of its clientele from the entertainment industry, said Michael Hastings, former Burbank mayor and advisor to Boston-based LaSalle Hotel Properties.
The agreement allows owners of Hotel Amarano to build an additional four-story building with 32 rooms, a fitness center, pool and courtyard with cabanas in a vacant lot next to the existing campus.
The original planned development was approved in 1998.
The council voted 4 to 1 to extend the development period until September 2014 despite amending the agreement three times since 2003 to accommodate the writers strike, long-standing uncertainty surrounding Screen Actors Guild contracts and a nationwide decline in hotel occupancy.
National statistics show high-end resorts down 16.3%, compared with a nearly 11% decline for the industry as a whole, according to Smith Travel Research, a private firm that tracks the lodging industry. The Amarano is down roughly 23% from a year ago.
Management also has brought the hotel into line with the council’s penchant for sustainable projects, installing new fixtures in the kitchen, bar and guest rooms and developing plans for drought-tolerant landscaping, Hastings said.
“These are things that the city asked us to do but did not require,” he said. “We’ve got our finger on the pulse. We’re not asleep at the switch.”
Luxury hotels are in somewhat of a bind, said General Manager Tom Whelan. While the hotel charges $250 to $450 per night, management staffs of reputable establishments are less likely to offer deep discounts or cut amenities because such moves could affect the hotel’s reputation, Hastings said.
“I feel the extension is reasonable, and it’s going to be a win-win for the city and your hotel,” said Councilman Jess Talamantes.
Councilman David Gordon, who cast the lone dissenting vote, opposed the extension on its face.
“They’ve gotten extension after extension after extension,” he said before the meeting. “I don’t believe in repeated extensions for projects. Let them resubmit the application.”
The proposed building is 21,578 square feet. Because it includes a new fitness center, the existing gym would be converted into a penthouse suite. Many of the hotel’s entertainment-industry clients treat the facility as an oasis for rest and relaxation, said Gary Olson, president and chief executive of the Burbank Chamber of Commerce.
The hotel, at 312 and 322 Pass Ave. at the intersection of Oak Street, also has received no complaints for traffic, street parking or noise, he said.
“We all recognize what the state of the economy and the state of availability of financing is,” said Councilman Dave Golonski. “Not a single one of the concerns that were raised when this project was built has come to pass.”
Formerly the Graciela Burbank, the 99-room full-service boutique hotel, is in the Media District across the street from Warner Bros. Studio Ranch and draws much of its clientele from the entertainment industry, said Michael Hastings, former Burbank mayor and advisor to Boston-based LaSalle Hotel Properties.
The agreement allows owners of Hotel Amarano to build an additional four-story building with 32 rooms, a fitness center, pool and courtyard with cabanas in a vacant lot next to the existing campus.
The original planned development was approved in 1998.
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National statistics show high-end resorts down 16.3%, compared with a nearly 11% decline for the industry as a whole, according to Smith Travel Research, a private firm that tracks the lodging industry. The Amarano is down roughly 23% from a year ago.
Management also has brought the hotel into line with the council’s penchant for sustainable projects, installing new fixtures in the kitchen, bar and guest rooms and developing plans for drought-tolerant landscaping, Hastings said.
“These are things that the city asked us to do but did not require,” he said. “We’ve got our finger on the pulse. We’re not asleep at the switch.”
Luxury hotels are in somewhat of a bind, said General Manager Tom Whelan. While the hotel charges $250 to $450 per night, management staffs of reputable establishments are less likely to offer deep discounts or cut amenities because such moves could affect the hotel’s reputation, Hastings said.
“I feel the extension is reasonable, and it’s going to be a win-win for the city and your hotel,” said Councilman Jess Talamantes.
Councilman David Gordon, who cast the lone dissenting vote, opposed the extension on its face.
“They’ve gotten extension after extension after extension,” he said before the meeting. “I don’t believe in repeated extensions for projects. Let them resubmit the application.”
The proposed building is 21,578 square feet. Because it includes a new fitness center, the existing gym would be converted into a penthouse suite. Many of the hotel’s entertainment-industry clients treat the facility as an oasis for rest and relaxation, said Gary Olson, president and chief executive of the Burbank Chamber of Commerce.
The hotel, at 312 and 322 Pass Ave. at the intersection of Oak Street, also has received no complaints for traffic, street parking or noise, he said.
“We all recognize what the state of the economy and the state of availability of financing is,” said Councilman Dave Golonski. “Not a single one of the concerns that were raised when this project was built has come to pass.”
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