Hotel openings are down in California, with factors outside typical supply-demand dynamics influencing that trend. The California Development Survey 2026 Mid-Year from Atlas Hospitality Group found that during the first six months of the year, California had 21 hotels open with approximately 1,988 rooms, a year-over-year decline of 42% and 63% respectively. Conversely, both the number of hotels and hotel rooms entering the construction phase grew by 16% to 115 properties and 14,126 rooms.