CLARITA VALLEY BUSINESS JOURNAL OFFICIAL PUBLICATION OF THE SCV CHAMBER OF COMMERCE MAY 2024 VOL 16 • No 5 SIGNALSCV.COM/BUSINESS Santa Clarita Stock Index Keller Butler Econowatch and More! WHY THE HOSPITALITY INDUSTRY IS BOOMING
SANTA
VIA Awarded the William S. Hart Union High School District, ONE HART AWARD
The William S. Hart Union High School District shared a wonderful honor with the Valley Industry Association in April. VIA was proud to be the recipient of the prestigious ONE HART AWARD, presented by Superintendent Mike Kuhlman in recognition of the organization’s long term partnership with the Hart District. Superintendent Kuhlman noted VIA’s Connecting to Success Program, which has served more than 38,000 students from the Hart District since its inception in 2003, as a unique partnership between school and business that provides students with the workforce readiness and professional skills they need to more successfully enter the workplace.
The One Hart Award is presented to staff, students and community members who exemplify the district’s core values: Community, Caring, Courage and Creativity. VIA was thrilled to be honored for their community contributions.
Interested in being a part of Connecting to Success? We are searching out program facilitators, industry experts, mentors, hands-on volunteers and sponsors. Full information is available at www.viaconnectingtosuccess.com or by contacting the VIA office (661) 294-8088
2024 UPCOMING EVENTS
May
June
June
Engage in dynamic panel discussions with Santa Clarita Valley’s industry trailblazers. Gain exclusive insights into their strategies, challenges, and proactive approaches.
Don’t just adapt—thrive in the future of work!
Secure your spot today! Register by May 9,2024 Sponsorships are available. For more information contact Kathy Norris, Kathy@via.org or 661.294.8088
Ready to dive into a world of color and celebration? VIA BASH 2024 is gearing up to be the highlight of the year! Mark your calendars for October 18, 2024, and get ready for an explosion of excitement.
Cocktails & Conversation
July 10, 6:00 p.m.
Cocktails & Conversation
Assemblywoman Pilar Schiavo
July 19 | VIA Luncheon Update from Centennial (Town Center Mall) 11:30 am. - 1:30 p.m.
Dianne G. Van Hook University Center, RM. 258
July 25 | VIA
A D V O C A T E . E D U C A T E I N N O V A T E VALLEY INDUSTRY ASSOCIATION ADVOCATE • EDUCATE • INNOVATE
VISIT VIA.ORG
After Five
Executive Suites
23 | VIA
360
7:00 PM 25101 The Old Rd Stevenson Ranch, CA 91381
5:00 -
27
VIA After Five Bella Vida | SCV Rot. Club 5:00 - 7:00 PM 27180 Golden Valley Road Santa Clarita, CA 91351
|
20, 6:00 p.m.
Wilk
Senator Scott
Prosperitas Financial 5:00
7:00 PM 25060 Avenue Stanford, #100 Valencia,
After Five
-
CA 91355
Superintendent Kuhlman with Ed Masterson, Sue Tweddell and Hillary Broadwater representing VIA
WORLD my WORLD VIA BASH 2024 my VIA BASH 2024
2024 VIA BASH: SAVE THE DATE VIA.BJ.May2024.V1.indd 2 4/25/24 10:43 AM
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 3 Santa Clarita Valley Business Journal (a Signal publication), © 2024, is published monthly by the Santa Clarita Valley Signal newspaper, Paladin Multi-Media Group, Inc., 25060 Avenue Stanford, Ste 141, Valencia, CA 91355. The SCV Business Journal is intended to provide business executives with a cross-section of industry news and information, trends and statistics that impact our growing community. Information gathered in the pages of the SCV Business Journal has been collected from what are considered reliable sources, and is believed to be accurate, but cannot be guaranteed. Articles may not be reprinted without publisher’s written permission. For reprint requests, please call (661) 259-1234. A proud publication of SignalSCV. c om SINCE 1919 CONTENTS NEWS & FEATURES 6 Developing Stories 7 The Future of Hospitality 10 The Real Estate Report 10 The SCV’s Biggest Listing 18 Econowatch 19 The List: Local Hotels FROM THE EXPERTS 4 Ken Keller: Why Expectations Matter in Business 8 Paul Butler: The Importance of Building Trust 22 Jeff Prang: Assessing Historic Property SCV BUSINESS VOICES 5 Henry Mayo 9 Audiology Associates 16 SCV EDC ADVERTORIALS 17 SCV Water 17 George Almodovar CHAMBER SPOTLIGHTS 12 Local Advocacy in Action PUBLISHER Richard Budman rbudman@signalscv.com (661) 287-5501 BUSINESS JOURNAL EDITOR Perry Smith SALES REPRESENTATIVES Maureen Daniels Barbara Ward APRIL 2024 | Vol. 16 | No. 5 19 THE LIST: HOTELS 10 A SAND CANYON ‘GEM’ 18 THE SCV EDC ECONOWATCH 6 A DRIVE-THRU DISCUSSION
Why Expectations Matter in Business
BY KEN KELLER SCVBJ Contributing Writer
After 90 days or so on a new job, I pointedly asked my not-so-new boss, “I’ve been here for just about three months, how am I doing?”
My question caught him by surprise. It was well after 6 p m., and we were both tired after a long day. He realized that I needed some feedback on what and how I was doing, so he set down his pen, got up and closed his office door and for the next half-hour, we had a conversation about what he liked and didn’t like about my performance since I came on board. And, what he wanted me to do for the next quarter.
I left that meeting feeling relieved and more comfortable about my performance and what was expected. I’d like to believe that my boss learned something, too: providing feedback to your employees on a regular basis is essential for the wellbeing of both parties.
Providing candid feedback is often difficult. It is made more challenging because managers may not feel the need to make expectations clear. And in some businesses, no system exists to make certain things get done how and when they are supposed to. Desired results don’t materialize.
Why is that? Some managers feel that when someone is hired “they should know what to do because that is why I hired them.” CEOs may think, “I pay them well, they should know what and how to do their job.”
I have heard stories about people who are employed in positions of trust and responsibility that have essentially “quit on the job” but told no one. These individuals have not resigned, have not been terminated, yet show up at work, collect a paycheck and fail to perform. Not just for days, weeks or months; in some cases, for years.
How can this happen? How much money is wasted by keeping people on the payroll when they are not doing the job they are being paid to do? What is the
impact, morale-wise, on other employees who see that those that those quit on the job are still being paid and that this behavior is tolerated and even encouraged, because nothing is being done to address it?
Quitting on the job begins when the manager does not make expectations clear. It doesn’t matter if it is a small thing like being on time to work, or a big thing like not completing a critical report when it is expected.
Solving this problem starts when managers make expectations clear. Every employee needs to know what is expected of and from them.
If a manager is not well managed, you can bet that those that report to him or her will not be well managed. The organization killing virus of hazy expectations cascades. Some escape from it by leaving the company, and some will fight it because of who they are, but many stay because it is easier to be expected to do nothing and be paid for it than to buck the system and try to change it.
Even if expectations are clear and understood, they have to be managed. If I am clear as to what is expected of me, my manager has to make 100% certain that I have the needed tools, skills and other resources to complete the assignment.
Just because I have the tenure, seniority, age, education, background or the fact that you like me does not make me
capable. Just because I told you I am capable does not make me so. The sooner you find out I am capable (or not) the better for you and the company. When expectations are clear, and the task has been assigned to someone that is capable, the final step in the process is that the manager has to hold the individual accountable for getting things done, to a certain quality level, by a certain deadline.
Accountability is not punishment nor is it micromanaging. Accountability is not yelling, screaming, pounding desks or making people feel bad. It is simply a process that a company uses to make progress towards goals.
It is the responsibility and obligation of every manager at every level to hire the right people, make expectations clear and to hold people accountable. To do less than that is an insult to those who come to work to accomplish what was asked of them
Ken Keller is an executive coach who works with small and midsize B2B company owners, CEOs and entrepreneurs. He facilitates formal top executive peer groups for business expansion, including revenue growth, improved internal efficiencies and greater profitability. Email: Ken.Keller@strategicadvisoryboards. com. Keller’s column reflects his own views and not necessarily those of the SCVBJ.
4 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
Get the Facts about Bird Flu
RPATRICK
MOODY
Henry Mayo Newhall Hospital
ecently, dairy cows in Texas infected a person with bird flu—HPAI A(H5N1). It’s the first time cow-to-human spread of H5N1 bird flu has been detected. There’s no evidence of the virus spreading in humans, but the issue has made headlines, and you might be wondering how the bird flu might affect you.
WHAT IS THE RISK OF BIRD FLU FOR HUMANS?
Most people aren’t at risk. At the moment, the bird flu issue is mostly an animal health problem. Bird flu in humans can happen, but it’s rare. Only two cases of H5N1 bird flu have been reported in the U.S., according to the CDC.
CAN ANIMALS OTHER THAN BIRDS GET BIRD FLU?
As the name suggests, the H5N1 bird flu virus mostly affects birds. Since 2022, it’s affected wild birds and domestic poultry around the world. But it can affect other animals, too, including mammals. Foxes, dogs, cats, seals and tigers have all been infected.
CAN THE FLU SPREAD THROUGH MILK?
The H5N1 virus has been found in milk from infected cows. But milk sold in grocery stores is safe, reports FDA. New rules are in place to make sure milk from sick cows does not enter our food supply. And milk sold in U.S. stores is heated to kill harmful bacteria and viruses. That process is called pasteurization.
IS IT SAFE TO EAT CHICKEN AND EGGS?
Yes, as long as you follow food safety guidelines. Cook poultry and eggs to an internal temperature of 165 degrees to kill off bacteria and viruses, including bird flu.
WHAT HAPPENS IF BIRD FLU DOES SPREAD WIDELY TO HUMANS?
If that happens, it won’t be like COVID-19. Antiviral drugs are already available to treat H5N1 bird flu. And, while a seasonal flu shot won’t protect against H5N1 bird flu, we already know how to make a vaccine.
WHAT CAN I DO TO PROTECT MYSELF FROM BIRD FLU?
To protect yourself, avoid contact with animals that might have the bird flu. That means: Steer clear of wild birds. They can be infected without seeming sick. The virus is commonly carried by water birds and
shorebirds, including ducks, geese and storks.
Avoid contact with sick or dead birds, including poultry, and other wildlife.
Don’t touch surfaces that may be contaminated with animal feces, raw milk or other materials from potentially contaminated animals.
Don’t eat or drink unpasteurized milk or other unpasteurized dairy products. Whether viruses are surging or not, it’s
always smart to wash your hands often and well to avoid spreading illness. WHEN SHOULD I SEE A HEALTHCARE PROVIDER?
If you have flu symptoms and think you might have been exposed to infected animals, you should see your healthcare provider. Symptoms to watch for include fever, sore throat, coughing, shortness of breath and body aches.
MAY 2024 5 SCV BUSINESS VOICES
More Chick-fil-A, Mall Plans Coming Soon
PERRY SMITH
Developing Stories
The city of Santa Clarita continues to see activity throughout its borders in the Planning Division, everything from largescale developments to cell phone towers to potential new drive-thru locations kept the planners on Valencia Boulevard busy.
At April’s Planning Commission meeting, the body received a presentation on more than a year of outreach by city officials about what residents would like to see at the Valencia mall.
The mall is being redeveloped by its new owner, Dallas-based Centennial, which purchased the mall last fall for about $195 million.
As a result, the city said it’s trying to create a “place-making” framework for the mall, i.e. a plan that will hopefully bolster the sagging shopping center and turn it into more of a regional destination, a la Irvine Spectrum or the Americana. The mall’s new owners have said they’re on board with what the city’s working on, so that always helps.
The housing element in the plan also calls for the city to “strongly encourage” the developer, in a likely buildout scenario that calls for 2,200 units, to create 440 of the units as “affordable housing,” meaning priced for those making less than 80% of the area’s median income.
The plan is expected to be back in front of the Santa Clarita Planning Commission on May 21 for additional discussion of the Town Center Specific Plan, including answers to some of the public and commissioners’ questions about access, circulation and housing.
Anyone who has tried to make a cellphone call outside of the Target shopping center at Golden Valley can appreciate one of the applications that the city received for a cell phone tower, a “stealth/roof mounted wireless telecommunications facility” for the top of the Petsmart location in the shopping center.
“The proposed design generally involves adding new decorative antenna screening on the west and east sides of.
the rooftop to conceal/hide antennas and related equipment,” according to an application from the Eukon Group on behalf of AT&T.
“The proposed project is necessary to close a Significant Gap in AT&T’s wireless services per the attached RF propagation maps,” according to the application.
Anyone wondering to themselves now, “Why would he mention a cell phone tower?” has obviously never been to City Hall when such a relatively small structure has drawn numerous complaints.
Another potential improvement being discussed at City Hall that could benefit east-side commuters is the addition of a pair of gas pumps to the station at Sam’s Club off Centre Pointe Parkway.
“For the fuel station improvements, existing landscape and parking stalls will be removed,” according to the application.
Plans for the May Planning Commission meeting, in addition to more talk about the mall plans, are expected to include a discussion of a wireless facility, similar to the idea of the one above, but located off Sierra Highway, according to planning officials.
A Chick-fil-A location next to Santa Clarita Lanes and adjacent to the Villa Metro development on Soledad Canyon Road is also expected to be on the agenda for the May meeting.
The popular fried chicken spot has been conducting outreach for months
with nearby residents, who have brought forth questions about traffic circulation and their egress.
Residents were introduced to the project last year during a meeting of the community’s HOA.
The property’s owner said the design was intended to make it really a mobileonly location, with no dine-in seating available.
“We’re going to have a Chick-fil-A with no walk-in seating,” said Tom Cristi, the owner of the bowling alley and the property proposed for a Chick-fil-A, “it’s a drive-in only, that will handle up to 60 cars at a time.”
The neighbors have circulated a community petition over their concerns.
In a statement, Chick-fil-A said it’s committed to being a good neighbor.
“We conducted a queuing analysis and noise study to ensure that our drive-thru design will efficiently serve customers without disrupting traffic to the surrounding area,” according to a statement from Maya Prasad, a spokeswoman for Chick-fil-A.
Chick-fil-A is also looking to add a dine-in location near Magic Mountain Parkway and Interstate 5, according to a statement from the company last August.
6 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
Chick-fil-A is looking to discuss plans for a drive-thru only location next to Villa Metro, which proponents say won’t have nearly the line that the Valencia mall location frequently has. SIGNAL FILE PHOTO
Hospitality Innovations and Trends in the Travel Industry for 2025
SPECIAL REPORT FROM CLOUDBEDS
This year there are five trends from last year: value-driven decisions, the virtual front desk, hybrid hospitality, new search habits, and the rise of experiential travel, that we anticipate will continue, along with six newer developments poised to reshape the travel landscape.
These trends include a resurgence in lagging market segments, an uptick in inflation-busting travel hacks, and new spins on experiential travel. We also anticipate continued growth in the shortterm rental sector (despite rumors to the contrary), new efficiencies driven by generative AI, and growing demand for new skills among next-generation hoteliers. While the economy seems poised to dodge a recession again this year, that doesn’t mean it will be smooth sailing for hotels. As we observed in the previous section, travel patterns are changing, travelers are more price-sensitive, and demand may soften. Under any market conditions, it’s the hoteliers who monitor the trends and data closely, act quickly to seize opportunities, and offer a distinctive guest experience that will outperform the market.
The Comeback: Straggling Segments Catch Up
Since the pandemic, leisure demand has been so strong it has been easy to overlook other market segments that have been slower to rebound. However, with growth in leisure travel now at a virtual standstill, all bets are on a triple threat of market segments picking up the slack: international, corporate, and group travel.
Here Come the Big Spenders
In 2023, international tourism reached almost 90% of pre-pandemic levels, setting the stage for a full recovery in 2024. Inbound tourists tend to stay longer and spend as much as 90% more than domestic travelers, according to Aoife Roche of STR, speaking at Cloudbeds’ inaugural Passport UserCon. She also noted that strong demand from Asia Pacific is likely to fill any gaps in other regions.
Back to Business Travel
After stalling and sputtering in recent years, global business travel is forecasted to zoom past pre-pandemic spending levels in 2024. Some of the recovery will be fueled by rate growth, whereas travel volume may still lag behind 2019 numbers. China is expected to lead the charge, reclaiming its position as the No. 1 outbound business travel market in the world.
The More the Merrier
Group travel made strong strides in 2023, and the momentum is anticipated to continue through 2024. This includes not only conference travel and small regional meetings but also team-building events, social groups, and group trips to sporting events like the Olympic Games in Paris. However, groups might not hit their usual haunts. Many conferences and events have shifted from large, urban cities to smaller, secondary markets, according to Hilton.
What does this mean for independent properties?
Chasing demand is about finding new business opportunities, and these market segments offer valuable ways to strengthen hotel performance. International travelers are generally less pricesensitive than domestic travelers, and they tend to stick around for a while. As
our data indicates, more business travelers are working remotely and combining leisure activities on trips, increasing the average length of stay. And groups often book well in advance, providing a solid base upon which to build higher-rated business.
Even properties that don’t host a lot of groups or business travelers can benefit from the compression they bring to a region. The local convention & visitors bureau (CVB) can keep hoteliers up to date on upcoming events and conferences, providing advanced notice of opportunities to increase rates.
Hotels that cater to diverse market segments enjoy stronger year-round demand and are better positioned to weather a softening in one or more segments. In 2024, the time may be ripe to start spreading the love.
Inflation Who? Travelers Trade Up
Inflation is heavy on the minds of consumers these days. Nevertheless, surveys indicate that people are unwilling to sacrifice travel or compromise on their tastes. Instead, they’re finding creative ways to trade up travel experiences.
Aspirational Luxury
To experience a richer lifestyle on the road than at home, travelers are employing money-saving hacks such as travel-
See TRENDS, page 11
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 7
Global business travel is forecasted to zoom past pre-pandemic spending levels.
The Importance of Building Trust
BY PAUL BUTLER SCVBJ Contributing Writer
My observation of today’s working world is there’s never enough time. Many people describe their day of industry as being “slammed,” “buried,” “busy” or “crazy busy.”
Wouldn’t you think with all these timesaving devices, we’d have more time? Conversely, the more we have at our fingertips, the less breathing space we seem to enjoy. Individuals, teams and whole organizations are straining with how to squeeze more into an already over-committed day.
Although I’m a believer in being as productive as possible, and I also enjoy and personally benefit from many time-saving tools, I have found the biggest game changer is not about things but rather people.
The glue that bonds people together is trust — a word that’s easy to say and yet hard to do. Trust is two sides of a coin. Trust is character and competence. Character is who you are. Competence is what you do. We need both. If you’re a person of high character and you’re good at your job, people will trust you.
My observation has been that when you endeavor to be a person of high moral character and you go the extra mile to be highly competent at your work, people extend trust to you. There’s a wonderful chemistry that occurs with colleagues, customers, and vendors when the trust is high. Work gets done in seemingly less time.
I can think of a client I work with where the trust is so high between us, the work output is exemplary. Projects are completed on time and often early, and therefore under-budget.
When I think of the main representative I interact with from that client — she is a person of impeccable character. She does what she says she will do when she says she will do it. She never cuts corners. She always gives 100%. I’ve never heard her bad-mouth a colleague. The quality of her work is top-notch. I’m
There’s a wonderful chemistry that occurs with colleagues, customers, and vendors when the trust is high. Work gets done in seemingly less time.
confident that if you were to ask her to describe the work we do for her organization and how we complete the work, she would give us a grade “A” for both character and competence.
There is unquestionably a speed of trust that can reduce costs and reduce time. Sadly, when trust is low, everything slows down — there’s more bureaucracy, meetings about meetings and doublechecking of information. The goal with people, therefore, is always to build trust.
I remember working with a colleague when we were both employees for a major corporation. He was very competent, but his character was questionable. It wasn’t that he was a liar, a cheat, or a thief — it’s just that he had favorites; he moved within a clique of leaders at his level and above — rarely interacting with those below him. He looked at his underlings as being units of production, not people.
Due to a lack of character, he didn’t trust anyone because no one trusted him. He was always the last to leave. His office light was often still on while the janitors were coming through the cubicles with their industrial vacuums. He
was always missing his young son’s ballgames, and I don’t think I ever heard him speak lovingly or longingly of his wife of a couple of decades. He was always late; always scrambling and always harassed and busy-minded.
My colleague had metaphorically locked himself away in a corner office, but what he didn’t realize was he held the key in his own hand. If he would have focused on being a nicer person to be around, his direct reports would have gone the extra mile to help get him on the road earlier.
In summary, my top tip for time management is to focus on people, not things. Yes, devices can save us time. They also waste time. Invest time to always be the very best version of yourself, and that will not only save time but also create more time. It’s a miracle written on the human heart — trust is the glue that bonds people together.
Paul Butler is a Santa Clarita resident and a client partner with Newleaf Training and Development of Valencia (newleaftd.com). For questions or comments, email Butler at paul.butler@newleaftd. com.
8 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
Spring Allergies, Weather Changes: Are your ears ready?
DR. KEVIN BOLDER AuD, Audiology Associates
While spring brings longer days and warmer weather, it also brings erratic temperature shifts and seasonal allergies that can affect your ears and hearing.
While most people think of allergy symptoms as sneezing and sinus pressure, it is important to remember that the ears and sinuses are interconnected. Because of this, allergies can also cause stuffy or clogged ears.
According to the Asthma and Allergy Foundation, seasonal allergies affect between 10 and 30 percent of adults in the U.S. and as many as 40 percent of children, which means as many as 60 million people in the U.S. suffer from not only sneezing, itchy eyes, itchy ears, and sinus pressure, but ear pressure as well.
Unfortunately, allergies also cause swelling of
the Eustachian tubes, meaning they don’t open as they should. This combination of swelling and increased mucus causes the Eustachian tubes to become clogged. Not only can this result in a feeling of fullness and pressure in the ears, but it can also lead to temporary hearing loss as well.
Other ear-related issues can worsen in the spring as well. Those with Meniere’s disease, in particular, can suffer greatly during spring weather changes.
Normally fluids in the inner ear circulate. However, problems occur when the overproduction of fluid that characterizes Meniere’s disease actually backs up under the increased pressure and causes the endolymphatic chambers to bulge. The result is discomfort, fullness and pressure along with the potential of other unpleasant symptoms.
If allergies are causing your clogged ears, over-the-counter antihistamines or decongestants might help relieve your symptoms. Spring also brings challenges for those
with hearing aids. The rise in allergens and wet weather means paying closer attention to maintenance and upkeep of hearing devices. For example, increased allergens can clog microphone ports in hearing aids, so be sure to clean hearing aids regularly and replace covers of mic ports when necessary.
Along with allergens, spring is accompanied by heat, humidity, rain and extreme temperature changes. Moisture is the enemy of hearing aids, as it can build up in the tubing, damage the microphone and receiver and cause static. In addition, warm weather means more earwax build-up, which can clog the sound openings. If you’re experiencing hearing problems or other ear-related issues, be sure to call Audiology Associates at 661-284-1900. Kevin Bolder, Au.D and John Davis, Au.D are two of the best in Santa Clarita and San Fernando Valley. Visit our website at www.AudiologyAssociates.net or stop by our office located at 25425 Orchard Village Road, Ste 220, Santa Clarita, CA 91355. We are hearing healthcare excellence!
MAY 2024 9 SCV BUSINESS VOICES
Market Watch: Reflecting , Looking Ahead
BY PERRY SMITH SCV Business Journal Editor
The Santa Clarita real estate market continued to see the value of homes go up in the latest figures from the Southland Regional Association of Realtors.
The supply and the number of new homes also have stayed relatively steady and relatively low over the last few months.
The average list price for new escrows that opened in March was nearly $822,000, which is down slightly from last month’s $862,500, but still up significantly from last March’s price for new escrow’s listing, which was nearly $753,000.
And a look at the broader picture shows that the rise in SCV homes’ value has been nothing short of eye-popping over the last five years in terms of return on investment.
In March, 2019, the SCV’s median sale price for a residential home was $542,000. The average price for a home in March was $790,000 — a 46% percent
Aincrease over five years.
The market was a slightly different picture, and of course things have changed since then that have completely upended the market in some respects for singlefamily homes and how projects are being envisioned by developers.
Another big example of the difference is supply. For example, in March 2019, there were more than 800 active listings on the market (818). Last month, there was almost half that, 460, which could have an impact on the market.
The overall median list price for condos and single-family homes over that same time period has risen from $610,000 to $800,000.
Another factor that can be seen in that time period is the number of days that a listing stays on the market, which has decreased over the last year.
In 2019, the average number of days a home was on the market was 48 days, a figure that was 45 days a year ago, 35 days in February and only 27 days in March 2024.
There were 204 new escrows that opened in the most recent month, and
229 escrows that closed. The previous month there were 224 new escrows and139 that closed.
There’s a lot of discussion of development that can impact the SCV housing supply, with the city looking to possibly add thousands of homes to the center of town at development being proposed that’s called Sunridge; and another couple of thousand multifamily units for the redevelopment of the mall. Both of those projects are probably a couple of years away from completion, but they both no doubt will have a significant impact.
The city has approximately 22,500 apartment units as of March 5, according to city officials, so it’s hard not to imagine the addition of approximately 2,500 multifamily units at the Valencia mall and possibly another 6,500 more for Sunridge at the former Whittaker-Bermite site wouldn’t have the potential to affect the market significantly. At the very least, it would add a much-needed supply.
‘Gem’ of Sand Canyon Home
BY PERRY SMITH SCV Business Journal Editor
The Santa Clarita Valley Business Journal’s glance at the top of the residential real estate market for new listings includes a look at a palatial 11,000-square-foot Sand Canyon spread split between a 9,000-square-foot main house and a 2,000-square-foot guest quarters.
Situated in the heart of the canyon, where Triumph Road turns into Alamo Canyon Road, about quarter-mile west of Sand Canyon Road, the $5.4 million home “Checks every single box you can imagine,” according to an online listing for 16450 Alamo Canyon Road.
The final count is six bedrooms and 10 full bathrooms, which are spread out in a spacious array.
The main home has the primary suite and a guest suite and office on the first floor, with the second floor featuring
Between the main estate and the guest house, this Sand Canyon home on Alamo Canyon Road offers six bedrooms, 10 full bathrooms and 11,000 square feet of space.
COURTESY EXP REALTY
OF CALIFORNIA
direct access from outside, two large balconies, and three guest suites, as well as an additional living area, kitchenette and spare laundry room.
The detached guest house works as a pool house or a gym space, with another kitchenette, full bathroom and multiple sets of french doors leading to the outdoor entertaining space downstairs.
Upstairs the guest quarters offer a full bedroom, a bathroom apartment and a
living room, a kitchen and its own laundry.
The outside entertaining space also has multiple water and fire features, as well as entertainment equipment, and privacy.
The listing has only been on the market a couple of weeks, according to the agent of record, Morgan Gonzalez of eXp Realty of California. More information and a virtual tour are available online.
10 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
TRENDS
Continued from page 7
ing off-peak, during the week, and closer to home. Some are choosing destinations where the cost of living is relatively low, whereas others are buying a day pass or enjoying drinks at a luxury hotel (and posting proof on Instagram) while staying at a more affordable property.
Close Enough: The Quest for Dupes
Popularized on TikTok, a dupe refers to a more affordable alternative to a popular but pricey product. Not only are dupe destinations less expensive, they also tend to be less crowded and less predictable. For travelers, this might mean choosing Quebec City over Paris or Liverpool over London. Already, one in three travelers has booked a dupe, according to Expedia.
Postponing the Payment, Not the Trip
“Buy Now, Pay Later” (BNPL) is the fastest-growing form of payment in the U.S. In travel, service providers like Affirm and Afterpay have partnered with Booking.com, Expedia, Airbnb, and select hotel companies to offer BNPL options, and the list is growing fast. In a survey from Atmosphere Research, four in 10 travelers said that a BNPL option had made it possible for them to take a trip.
What does this mean for independent properties?
While travelers may seek bargains in 2024, hotels still have bills to pay and staff to employ. Meeting demand for deals will require finding imaginative ways to make travelers feel they are paying less without slashing room rates.
Rather than being on sale all
Hotels still have bills to pay and staff to employ. Meeting demand for deals will require finding imaginative ways to make travelers feel they are paying less without slashing room rates.
the time, hotels can protect rates by restricting discounts to times of low demand and targeting desirable business like advanced bookings and extended stays throughout the year. Reduced increments for premium rooms and suites can entice aspirational
travelers to trade up, while charging premiums for conveniences like flexible cancellation, early check-in, and late check-out can boost total revenue.
Often it’s the little extras
See EXPERIENCES, page 18
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 11
New Podcast Launch: The Voice(s) of Business
The Voice(s) of Business” podcast in partnership with SCAN Media, LLC and 95Visual is our newest initiative
This exciting venture aims to spotlight the diverse and dynamic businesses, along with the remarkable business owners and leaders, who represent the vibrant Santa Clarita Valley business community.
“We’re excited about this collaboration with our Chamber. There’s such a rich history with the SCV Chamber that also tracks with the history of the Santa Clarita Valley. So, it’s great to be able to connect with all of the unique voices that make up our community, to share their stories of their personal journeys and to learn about their businesses.” said Corey Nathan, Exec. Producer, Host SCAN Media and Joshua Maddux, Founder and CEO of 95Visual.
In each episode, “The Voice(s) of Business” will delve into the stories, challenges, successes, and insights of local businesses and entrepreneurs. From startups to seasoned industry leaders, the podcast will feature a wide range of voices, showcasing the richness and diversity of our business landscape.
“Our community is teeming with incredible talent, innovation, and entrepreneurial spirit,” said Becki Robb, Chair of the SCV Chamber Board. “With ‘The Voice(s) of Business,’ we aim to shine a spotlight on these remarkable individuals and businesses, celebrating their contributions and sharing their journeys with the world.”
Through engaging conversations and thought-provoking interviews, “The Voice(s) of Business” will provide listeners with valuable insights, inspiration, and a deeper understanding of what makes our community so special.
“The SCV Chamber has been the Voice of Business for over 100 years and is proud to bring the Voice(s) of our community with the new podcast. There is power in unity and collaboration,” said Ivan Volschenk, President & CEO of the SCV Chamber. “By amplifying the voices and stories of our local businesses, we hope to continue to foster a sense of connection and pride within our community and the SCV Chamber, while also providing a platform for learning and growth.”
Listeners can expect to hear from a diverse array of guests, including small business owners, industry experts, innovators, and community leaders. Topics will range from entrepreneurship and leadership to industry trends, local initiatives, and more.
“The Voice(s) of Business” podcast is now available on Apple, Spotify and anywhere you get your podcasts. Join us as we celebrate the spirit of entrepreneurship, innovation, and community that defines our amazing Valley. Subscribe today and be inspired by the voices shaping our business landscape!
The Voice of Business
12 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
From celebrating new businesses opening or marking special occasions and achievements, we continue to be honored being part of your celebrations.
We encourage everyone to come and support our new businesses. All our grand opening/ribbon cuttings are free and open to everyone to attend.
Congratulations to USA Printing and Signs on your Grand Opening and celebration in April! Go to www.usaprintingandsigns. comto find out more and to support them! Thank you to everyone who came out to support them on their special occasion.
Photo credit: Joie de Vivre Photographie
City Councilmember Laurene Weste welcomes and congratulates the leadership on their grand opening.
Photo credit: Joie de Vivre Photographie
Celebrating SCV Businesses
Congratulations to Grocery Outlet of Bouquet Canyon on your Grand Opening and celebration in April! PLease go visit them at 26825 Bouquet Canyon Rd. , Santa Clarita. Thank you to everyone who came out to support them on their special occasion.
Upcoming Grand Opening at Hanasaki Sushi Bar, please join us on May 30th at 11am. 19315 Plum Canyon Rd Suite A, Santa Clarita
Do you have a grand opening or anniversary coming up? Email us at hello@scvchamber.com for details about hosting a ribbon cutting ceremony.
Mayor Pro-Tem, Bill Miranda welcomes and congratulates the leadership of Grocery Outlet on their grand opening.
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 13
14 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
Cino de Mayo
May 7 | 5:30 pm
Join us for an evening of connection, celebration, and opportunity at our annual Cinco de Mayo Networking Celebration.
As part of our core mission to foster partnerships and promote Latinx-owned businesses, we invite you for an unforgettable celebration of our vibrant and growing business community.
Your ticket includes one drink and a selection of delicious small bites to enjoy as you mingle and connect with fellow attendees. Raise a glass to friendship, collaboration, and the boundless potential of our collective efforts.
RSVP Today: Secure your spot at this special celebration and be part of a dynamic community dedicated to empowering Latinx businesses and professionals. Don’t miss this opportunity to expand your network, discover new opportunities, and celebrate our Latinx culture and achievements.
Government Affairs Council (Virtual)
May 8 | 10:30 am
We invite you to participate in our monthly Government Affairs Council meeting—a vital forum where we discuss, review, and take action on policy decisions at the local, county, state, and federal levels.
As a proactive advocate for our members, the SCV Chamber is committed to maintaining a healthy and vibrant business climate in one of California’s most business-friendly cities. Our Government Affairs Council plays a pivotal role in shaping legislative policies that support and promote business growth in the Santa Clarita Valley.
At our monthly meetings, attendees have the opportunity to:
Review Policy Decisions: Stay informed about the latest policy developments and legislative initiatives affecting the business community at the local, regional, state, and federal levels.
Engage in Discussions: Participate in meaningful discussions with fellow business leaders, policymakers, and community stakeholders to exchange ideas, share perspectives, and advocate for policies that align with our collective interests.
Take Action: Collaborate with the Chamber and fellow members to develop strategic advocacy efforts and initiatives aimed at advancing our policy priorities and advocating for positive change.
Whether you’re a seasoned advocate or new to the realm of government affairs, your voice matters. Join us as we work together to shape the future of our business community and make a difference in the legislative landscape. Open to all Chamber Members!
For more information or to RSVP for your seat at the table, email us at hello@scvchamber.com.
To view our full calendar and event details go to www.SCVChamber.com or scan the QR Code to the right.
UPCOMING EVENTS
Business After Hours Mixer at Chronic Tacos
May 15 | 5:30 pm
Join us for our May Business After Hours mixer at Chronic Tacos, where business representatives from across the Santa Clarita Valley will gather for an evening of networking. Enjoy food, drinks and the chance to forge new connections and reconnect with friends!
Our mixers are a great way to get engaged with our business community in a relaxed and welcoming atmosphere, where ideas are exchanged, knowledge is shared, and potential partnerships are explored. Seize this chance to expand your network, gain new insights, and nurture lasting connections.
15th Annual State of the County
June 6 | 11:30 am
Supervisor Barger will provide an update on the key issues which are impacting the Santa Clarita Valley.
This year’s State of the County will include conversations with:
• LA County CEO - Fesia Davenport
• CEO of the Los Angeles Homeless Services Authority - Dr. Va Lecia Adams Kellum
• LA County Sheriff Robert Luna &
• Los Angeles County Fire Dept. Chief Anthony Morrone
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 15
Innovating in Santa Clarita, Several Beats Ahead of the Rest!
TBY JEY WAGNER, ED.D. President & CEO of the Santa Clarita Valley Economic Development Corporation
he Santa Clarita Valley (SCV) is fortunate to have a vast array of industries and businesses represented within our valley. That includes Remo Inc., the world’s leading manufacturer and developer of drumheads, drums, and essential add-on accessories for every drummer. They are headquartered in SCV, maintain a majority of the global market share of drum-related products, and are one of the valley’s largest employers.
Remo was founded by Remo Belli in 1957 in North Hollywood and relocated to SCV in 1997. Last month, the Santa Clarita Valley Economic Development Corporation (SCVEDC) Board of Directors was given a guided tour of Remo’s 220,000 square foot headquarters and production facility, where at full capacity they can make over 10,000 drums a day.
Remo Inc. has continued to innovate and expand its product line ever since their first commercially synthetic drumhead was created over 66 years ago. Aligned with their pursuit to seek “a better way” to separate themselves from their competition, the company introduced various drumhead types. Each offering a distinct sound to meet the specific needs of different musicians, across different genres. As part of its extensive patent library, Remo patented a technology to print graphics directly onto drumheads which allows them to provide the same quality sound across all drum offerings as those without images, when previously a special process was required to produce a similar sound. As a result of this innovative process, their graphics department makes customized drums and drumheads for some of the biggest names out there, including bands, sports teams, businesses, and even The Rose Parade.
They even have a drum specifically designed for helping premature babies regulate breathing and heart rates (an example of research demonstrating the benefits of music therapy was published by the NY Times).
On site at Remo, is the gorgeous Remo Music Center (RMC) where people of all ages can experience the benefit and joy of making music with others in a welcoming and non-challenging environment. The 1st and 3rd Tuesdays at 7pm are open to all, and Saturday mornings, at 10:30am, are for kids and their families. Drums and percussion instruments are provided!
The SCVEDC wants to thank Remo Inc. for being such a valued and innovative member of our local business community. As we prepare for this year’s Economic Outlook Event scheduled for September 27, 2024, and have the opportunity to “innovate with a shark” (our keynote speaker, Lori Grenier, star of the Emmy Award winning show, Shark Tank, will help us with that), we look forward to highlighting more of SCV’s innovators.
The Santa Clarita Valley Economic Development Corp. is a unique private/public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining, and expanding a diversity of businesses in the Santa Clarita Valley, especially those in key industry clusters, by offering competitive business services and other resources. For more information, visit SCVEDC.org.
SCV BUSINESS VOICES 16 MAY 2024
The Law Office Of George Almodovar
HAVE YOU BEEN INJURED ON THE JOB? CONTACT THE LAW OFFICE OF GEORGE ALMODOVAR for a FREE consultation with the attorney with over 32 years of experience Specializing in: Work Injuries Auto Accidents Motorcycle Accidents Train Accidents Airplane Accidents All Types of Accidents 661-523-0834 25060 Avenue Stanford, Suite 110, Valencia Hablamos Español Available 2417 IF YOU CAN’T COME TO US WE WILL COME TO YOU! Any person that knowingly makes any fraudulent statement to obtain representation with the intent of obtaining or denying Worker’s Compensation benefits is guilty of a felony.
SCV Water Launches Program to Support Local Businesses
n a recent press release SCV Water announced its “Water Champions” program, which focuses on supporting businesses within the SCV Water service area by providing programs and resources to use water efficiently. The program helps local businesses prioritize efficient water use and showcase their water conservation leadership to the community. Businesses can opt for a voluntary water-
use efficiency check-up, at no cost, to help them save water by:
• detecting and fixing leaks
• supplying water-saving devices (if needed)
• identifying other water savings opportunities to help lower water bills
• providing rebate and water-saving resource information
• To learn more, visit yourSCVwater.com/ water-champions.
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 17 HAVE YOU BEEN INJURED WHILE ON THE JOB? CONTACT THE OFFICE OF GEORGE ALMODOVAR for a FREE consultation with the attorney with over 32 years of experience. LAW OFFICE OF GEORGE ALMODOVAR 25060 Avenue Stanford, Suite 110, Valencia, CA 91355 Specializing in: Work Related Injuries Automobile Accidents All Types of Accidents Available 24/7 Hablamos Español IF YOU CAN’T COME TO US, WE’LL COME TO YOU! (661) 523-0834 I
EXPERIENCES
Continued from page 11
and thoughtful touches that guests remember most, especially when on a tight budget. Throwing in value-adds such as an upgrade, free parking, welcome cocktail, or room amenities can wow guests without costing the hotel a lot of money. Additionally, offering a BNPL option will attract more bookings, especially if the economy slows down.
The Experience IS The Destination
According to the old adage, it’s about the journey, not the destination, but in 2024, it’s all about the experience. After years of post-pandemic binge-buying, consumers are moving on from collecting stuff to collecting experiences. Here are three standout trends we’re observing.
Tour Tourism
In 2023, world tours by Taylor Swift and Beyoncé demonstrated the power of tour tourism, bringing hotels significant bumps in revenue wherever they touched down. Hotels can expect an encore in 2024, with more shows from Tay Tay as well as Coldplay, Madonna, Pink, and other headliners hitting the global tour circuit. Almost 70% of travelers say they are more likely than ever to travel to a concert outside their hometown, according to Expedia.
Memorable
Meals
This year, travelers are showing an
To tap into the experience trend, hotels should promote their proximity to popular activities, whether it’s a concert venue, popular restaurant or unique attraction.
insatiable appetite for culinary tourism. According to Skyscanner, 47% of U.S. travelers have booked a destination purely to visit a specific restaurant. For some, this may be experiencing Noma in Copenhagen, reputedly the world’s best restaurant, before it closes at year-end. For others, it may be heading to steamed dumpling stalls in Nepal, produce markets in Vietnam, or Cajun food trucks in New Orleans.
Splashy Trips
After last year’s record-breaking temperatures, more people will retreat to water destinations this year. But this is about more than lounging on floaties in the hotel pool. Activities on the roster include wild swims with dolphins in Mauritius, eco-diving among the mangrove forests in Yucatan, winter swims in Norway and Estonia, and island-hopping
by front crawl in the Adriatic. What does this mean for independent properties?
To tap into the experience trend, hotels should promote their proximity to popular activities, whether it’s a concert venue, popular restaurant, or unique attraction. Nearly two-thirds of travelers say they often or always book their hotel based on access to local experiences, according to Hilton.
Another effective tactic is to package overnight stays with tickets to a show, a dinner voucher for a local restaurant, or even concert swag. During the Eras Tour, Loews Hotels enticed Swifties to its properties by offering Swift-inspired cocktails, playlists, bracelet-making lessons, and photo backdrops.
By signing up for notifications of up-
See ADAPT, page 20
Economic DEvElopmEnt corporation
18 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
26455 Rockwell Canyon Road | UCEN 263 | Santa Clarita, CA 91355 | (661) 288-4400 | www.scvedc.org Econo Watch Santa Clarita Valley Q1 2024 Q4 2023 Q1 2024 Sq Ft Commercial Vacancy Rates Office Space 20.20% 21.78% 1,210,592 Industrial Space 2.60% 2.40% 1,237,287 Total Avail SF 2,447,876 Average Rent Per Square Foot Q1 2024 Q4 2023 Office Space (FSG) $2.69 $2.68 Industrial Space (Triple Net Lease) $1.26 $1.26 Building Permits Mar ‘24 Feb ‘24 Mar ‘23 New Commercial/Industrial Building Permits 0 2 0 Commercial Tenent Improvements/Alterations 15 22 29 New Residential Units (SFH) - City of SC 11 3 31 Unemployment Rates Mar ‘24 Feb ‘24 % Change Santa Clarita 5.0% 4.9% 2.04% Palmdale 7.2% 6.9% 4.35% Lancaster 7.5% 7.4% 1.35% Glendale 5.0% 4.9% 2.04% Los Angeles County 5.2% 5.0% 4.00% State 5.3% 5.2% 1.92% Housing Stats Mar ‘24 Feb ‘24 Mar ‘23 SCV Average Home Price 937,100 920,100 867,400 SCV Average Condo Price 621,000 551,400 563,000 SCV Home Sales (YTD) 346 187 380 SCV Condo Sales (YTD) 153 83 152 SCV Avg. # of Days on Market (SFH) 28 34 45 SCV Single Family Home Inventory 304 296 250
The List: Hotels
Best Western Valencia/Six Flags Inn & Suites 118 2012
Comfort Suites 100 1997
Courtyard Santa Clarita Valencia 140 2007
Embassy Suites Valencia 156 2007
Extended Stay America 104 2000
Fairfield Inn Santa Clarita Valencia 66 1997
Hampton Inn Los Angeles/ Santa Clarita 128 1988
Hilton Garden Inn Valencia Six Flags 152 1991
Holiday Inn Express & Suites Valencia - Santa Clarita 108 2021
Homewood Suites Santa Clarita 107 2020
Hyatt Regency Valencia 244 1998
La Quinta Inn & Suites Santa Clarita - Valencia 112 2006
Lexen Hotel 43 2020
Residence Inn Santa Clarita/ Valencia 90 1997
Residence Inn Valencia 99 2021
Free WiFi, free onsite parking, fitness center, business center, outdoor pool, 2 meeting rooms holding 50 people, 24-hour convenience store.
Free WiFi, free breakfast, fitness center, business center, outdoor pool.
Free WiFi, convenience store, on-site restaurant, indoor & outdoor pool, fitness center, 2 meeting rooms holding 65 people.
Free made-to-order breakfast, outdoor pool, fitness center, business center, on-site restaurant, 10 meeting rooms holding 763 people.
Free WiFi, free breakfast, free onsite parking, onsite laundry room.
Free WiFi, free breakfast, free onsite parking, fitness center, outdoor pool, dry cleaning service, 7 meeting rooms holding 388 people.
Free WiFi, free breakfast, free parking, outdoor pool, fitness center, laundry room, 1 meeting room holding 30 people.
Free WiFi, on-site restaurant, free parking, fitness center, outdoor pool, business center, 7 meeting rooms holding 180 people.
Free WiFi, free parking, free breakfast, fitness center, business center, outdoor pool, 1 meeting pool holding 28 people.
Free WiFi, free parking, fitness center, business center, on-site restaurant, indoor pool, one meeting room.
Free WiFi, on-site restaurant, bar/lounge, 24-hour market, 12 meeting rooms holding 500 people, business center, fitness center, outdoor pool.
Free WiFi, free parking, free breakfast, business center, dry cleaning services, fitness center, outdoor pool, meeting room, conference space.
Free WiFi, free breakfast, free onsite parking, fitness center, kids stay free, airport nearby, 1 meeting room.
Free WiFi, free breakfast, fitness center, outdoor tennis court, dry cleaning service, convenience store, business center, 7 meeting rooms holding 388 people.
Free WiFi, free breakfast, game room, dry cleaning service, restaurant, bar, fitness center, business center, 2 meeting rooms holding 76 people.
Santa Clarita Motel 33 1986 Free WiFi, free parking, laundry room.
SpringHill Suites Valencia 83 2021
Free WiFi, free breakfast, restaurant, bar, fitness center, game room, convenience store, business center, 2 meeting rooms holding 76 people.
Super 8 Santa Clarita/ Valencia 50 1980 Free WiFi, free parking, outdoor pool, hot tub.
27513 Wayne Mills Pl., Valencia (661) 255-0555 • www.bestwestern.com
25380 The Old Rd., Stevenson Ranch (661) 505-6397 • www.choicehotels.com
28523 Westinghouse Pl., Valencia (661) 257-3220 • www.marriott.com/hotels
28508 Westinghouse Pl., Valencia (661) 257-3111 • www.embassysuites3.hilton.com
24940 W. Pico Canyon Rd., Stevenson Ranch (661) 255-1044 • www.extendedstayamerica.com
25340 The Old Rd., Santa Clarita (661) 290-2828 • www.marriott.com/hotels
25259 The Old Rd., Santa Clarita (661) 253-2400 • www.hamptoninn3.hilton.com
27710 The Old Rd, Valencia (661) 254-8800 • www.hiltongardeninn3.hilton.com
27501 Wayne Mills Pl., Valencia (661) 284-2101 • www.ihg.com
28700 Newhall Ranch Rd., Santa Clarita (661) 257-1033 • www.hilton.com
24500 Town Center Dr., Valencia (661) 799-1234 • www.valencia.hyatt.com
25201 The Old Rd., Stevenson Ranch (661) 286-1111 • www.laquintasantaclaritastevensonranch.com
24219 Railroad Ave., Newhall (661) 505-7500 • www.lexenboutique.com
25320 The Old Rd., Santa Clarita (661) 290-2800 • www.marriott.com/hotels
27505 Wayne Mills Pl., Valencia (661) 481-0091 • www.marriott.com/hotels
24971 Railroad Ave., Santa Clarita (661) 259-2800 • www.santaclaritamotel.findyourhtl. com
27505 Wayne Mills Pl., Valencia (661) 481-0011 • www.marriott.com/hotels
17901 Sierry Hwy., Santa Clarita (661) 252-1722 • www.wyndhamhotels.com Travelodge 53 1989 Free WiFi, free parking, outdoor pool, hot tub, spa.
17843 Sierra Hwy., Santa Clarita (661) 252-1716
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 19 hotel # ROOMS YEAR BUILT BUSINESS RELATED ACCOMMODATIONS
CONTACT INFORMATION
Is an ‘Airbnbust’ on the horizon?
The pricing gap with hotels has narrowed and travelers have been grumbling about misleading pricing tactics. But it appears the demise is ‘greatly exaggerated.’
ADAPT
Continued from page 18
coming concerts, sporting events, and festivals, hoteliers will receive a heads-up to raise rates and implement stay restrictions when demand is expected to spike. Properties can also utilize business intelligence and revenue management systems integrated with their PMS to track events and update rates in real-time.
At the same time, operators should be careful not to neglect the most important experience of all: the guest experience. Unique, localized experiences are a major reason why travelers choose independent hotels over brands.
Airbnbust? Long-Term Obstacles For Short-Term Rentals
After substantial growth during the pandemic, the short-term rentals (STR) sector is experiencing serious pushback. Is this the beginning of the end?
Traditionally, a major draw for private rentals has been value: more space for less money. However, the pricing gap with hotels has narrowed, and travelers have been grumbling about misleading pricing tactics. Airbnb, in particular, has been assailed for advertising low prices only to produce sticker shock when fees are tacked on at checkout.
At the same time, governments have been cracking down on STR operators, capping the number of licenses issued and the number of days properties can be rented out per year. New York City is the latest city to throw down the gauntlet, with strict new regulations that bar hosts from renting out an entire home and require them to be present during the guests’ stay.
As a result of all this activity, whispers of an apocalyptic “Airbnbust” have spread online. Upon closer inspection, however, it appears that reports of the death of short-term rentals have been greatly exaggerated.
While some secondary markets have experienced a glut in supply, overall demand has increased, while hotel rates climbed faster than rental rates last year. Reporting last year on the company’s most profitable third quarter in history, CEO Brian Chesky remarked, “I think we’re only scratching the surface.” The company also introduced transparency measures to display the total price, including fees, at the beginning of listings.
Generative AI: Trusted Travel Advisor and 24/7 Intern
2023 was the year generative artificial intelligence (AI) went mainstream. Since launching in late 2022, ChatGPT has amassed more than 180 million users worldwide. Not to be outdone, Google launched Gemini in December, an AI chatbot that comprehends and generates not only text but also audio, video, and images.
What’s truly exciting about AI chatbots is their potential as a trusted travel advisor, providing personalized information and recommendations on everything from flight routes to accommodation choices based on the traveler’s budget and preferences, as well as acting as a translator, tour guide, and concierge. For example, Navan has launched Hotel Concierge by Ava, an automated virtual assistant that provides recommendations tailored to the traveler’s individual preferences and booking patterns.
However, one of the most significant
impacts of AI is perhaps its potential to revolutionize the operational efficiency of independent hotels. Technological advancements have democratized access to AI tools, with forward-thinking tech providers creating innovative products with advanced AI and machine learning. This shift is fostering a new era where hotel operators, regardless of size, can harness AI to streamline operations and accelerate efficiencies.
In 2024, we can expect AI to be meaningfully integrated into technology solutions to improve day-to-day operations for lodging businesses. From guest communication to revenue management and digital marketing, hoteliers will be able to use AI to enhance productivity and automate workflows, leaving more time for strategic decision-making.
Adapt or Go Obsolete: Next-Gen Hoteliers Upgrade their Skills
The nature of hospitality is changing, and a driving force is technology. Travelers are using more technology to plan trips and experience destinations, and hoteliers are using more technology to operate their properties and serve their guests.
Today, technology automates an increasing array of tasks for hotel employees, from taking reservations, to updating rates and availability, to checking guests in and out. While humans are still running the show, roles and responsibilities are evolving. From front desk staff to general managers, the challenge today is to find one’s place in a tech-centric world.
Growing Demand for Diverse Skills
The irony of it all? The range of skills required of hotel staff has expanded, not contracted. Technology doesn’t replace the skills employees have always needed to be successful — hard skills like technical aptitude and soft skills like empathy, creativity, and teamwork. But it also demands an array of new skills.
Today’s hospitality leaders must be more technical, able to operate dozens of applications used in the hotel environment today. They must be more analytical, able to extract meaning and insights from massive amounts of data. And they must be more strategic, finding the ideal balance between technology and human touch that keeps guests and teams happy and loyal.
20 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
There is also increasing demand for knowledge and skills in emerging tech fields such as generative AI, cloud computing, robotics, cybersecurity, internet of things, and virtual reality.
It’s Time to Rewrite the Rules
When travel behavior shifts, hoteliers must change how they do business if they wish to stay competitive. In 2024, this means letting go of old habits and embracing new ways of doing things — in marketing, revenue management, operations, guest experience, and across the organization.
The backbone of a successful hospitality business is modern technology. No longer can independent hoteliers allow themselves to be held back by manual processes and outdated software while competitors down the street leverage the speed and efficiency of automation and cloud technology.
Nor can hoteliers rely on continued guest satisfaction and loyalty without unified data to understand and cater to guest preferences. To stay competitive, hotels need an integrated hospital-
Over the past decade, Cloudbeds has evolved from a scrappy startup to an industry leader by rewriting the rules. To-
to follow a similar path. More than ever, our team is committed to providing best-ofclass technology to empower hoteliers to chase demand and elevate their businesses through the art of
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 21
SCV ROTARY CLUB MEMBERSHIP OUTREACH We’re looking for people who want to give back to the community. www.SCVRotary.com Email for details: info@SCVRotary.com Our network of 1.4m neighbors, friends, and leaders volunteer their skills and resources to solve issues and address community needs. Ready to learn about becoming a member? Join us for a FREE lunch Wednesdays at Noon. SCV Senior Center 27180 Golden Valley Santa Clarita, CA 91350 ENJOY LUNCH ON US! CA Insurance License # 0785905 | Securities offered through Securities America, Inc., Member FINRA/SIPC. Financial Advice & Investment Advisory Services offered through PFG Advisors. LBW, PFG Advisors, and Securities America are separate entities. Commercial Insurance Employee Benefits 401(k) Plans Visit us at www.LBWinsurance.com The Service and Expertise Your Business Deserves
scalable
evolves.
ity platform that is built to serve their unique needs and is
as their business grows and
day,
partners
hospitality. The backbone of a successful hospitality business is modern technology.
we encourage our hotel
Historic Preservation Can Lead to Property Tax Savings
BY JEFF PRANG Los Angeles County Assessor
We can all learn from the past, as those valuable history lessons provide us with a solid foundation that builds a better future. I believe that to be a true statement.
I also know that history can lead to a property tax savings’ program that preserves, as well as saves, money.
The Mills Act is an economic incentive program in California for the restoration and preservation of qualified historic buildings by property owners.
Enacted in 1972, the Mills Act grants participating cities and counties the authority to enter into contracts with owners of qualified historic properties who actively participate in the rehabilitation, restoration, preservation, and maintenance of their historic properties. The Mills Act permits property tax relief to offset the costs.
Mills Act contracts are for an initial term of 10 years. A contract automatically renews each year on its anniversary date and a new 10-year agreement becomes effective, creating a rolling contract term that is always equal to the initial terms of the contract.
How does the property tax relief work?
After a property owner enters into a contract, the local government agency notifies the Assessor — in this case my office — of the contract. We will then annually determine the value of a Mills Act property based upon a prescribed capitalization rate as provided for in Revenue and Taxation Code section 439.2 (b) or (c). This is a restricted value.
The next step is to compare this restricted value to the current market value and the factored base year value (also known as the “Proposition 13” value). The
lowest of the three values is then enrolled, which is most likely the restricted value.
In fact, that’s where the property tax savings come into the equation, so to speak. The restricted value can be considerably lower, many times more than half, than the other values creating a tax savings for the owner.
Since all properties are assessed annually, Mills Act properties may even undergo more decreases, possibly increases, in property taxes each year as market conditions change.
Each year all Mills Act enrolled properties are notified by mail of their Mills Act values for that year as determined by the Assessor. This notification is typically sent out when a new contract value is first enrolled, or annually in May for existing contracts.
How can I get my property registered or find out if my property qualifies for the Mills Act Program?
Each city and county (unincorporated Los Angeles County) may have different procedures for local historic designa-
tion. Contact the Planning Department or Community Development of your local municipality to confirm whether they participate in the Mills Act Program, the criteria that would need to be met, and the application process. Your building may already be considered a contributing structure to an established historic area. Also, many buildings that were not designated as historic in past surveys may now be eligible to qualify as historic.
For more information, please go to my website at assessor.lacounty.gov/ tax-relief/mills-act or review the state guidelines at State Board of Equalization Guidelines.
Los Angeles County Assessor Jeff Prang leads the largest local public property assessment agency in the nation. His office of about 1,400 appraisers and support staff are dedicated to creating an accurate and timely property Assessment Roll. This year, the Los Angeles County Assessor’s Office conducted more than 2.5 million real estate and business assessments valued at nearly $2 trillion.
22 · SANTA CLARITA VALLEY BUSINESS JOURNAL MAY 2024
OPENING A NEW BUSINESS? THE SIGNAL CAN HELP! We will help you publish your Fictictious Business Name or D.B.A. If you have already filed with the County Clerk, we can publish immediately. We are adjudicated for LOS ANGELES COUNTY. FOR MORE INFO, PLEASE CALL: (661) 287-5508 dba@signalscv.com The Mills Act is an economic incentive program in California for the restoration and preservation of qualified historic buildings by property owners.
Santa Clarita Stock Average
Santa Clarita Stock Average Below you will find a list of local Santa Clarita-based or prominent Santa Clarita companies used for our averages. Each month we will take the average of all these stocks and show that number. Tracking that number from month to month will give you a window into how our local company’s stocks are performing. Last month the index was 3,690.40 and the average price per share was $123.01 This month the index is 3,685.50, down 4.90 or .02%. For an average share price of $122.83.
MAY 2024 SANTA CLARITA VALLEY BUSINESS JOURNAL · 23 Company TICKER industry 4/30/23 price 3/29/24 price 4/26/24 price Amazon AMZN Retail 120.59 179.82 180.15 Auto Nation AN Auto dealers 137.31 165.58 169.88 Bank of SoCal BCAL Banking 13.88 14.91 14.14 Bioventus BVS Biomedical 2.8 5.20 3.95 Boeing BA Aerospace 203.63 192.91 167.00 Boston Scientific BSX Biomedical 51.06 68.12 73.00 California Resources CRC Energy 39.4 55.10 54.90 Carnival CCL Entertainment/leisure 11.24 16.34 15.07 CBRE CBRE Commercial real estate 75.51 97.24 87.33 Comcast CMCSA Communications 39.51 43.40 38.50 Costco COST Retail 507.15 732.28 729.51 Disney DIS Entertainment media 88.45 122.65 112.67 Five Point Holdings FPH Home developer 2.31 3.14 2.90 Home Depot HD Retail 293.39 383.60 335.09 IQVIA Holdings IQV Laboratory services 199.45 252.89 234.88 ITT Inc. ITT Aerospace/manufacturing 79.84 136.03 131.10 KB Homes KBH Home developer 44.12 70.80 65.68 Kohl's KSS Retail 26.01 29.11 24.53 Lennar LEN Home builder 107.45 172.92 155.10 Lowes LOW Retail 206.52 255.30 229.87 McDonalds MCD Restaurants 286.04 282.36 273.09 Otsuka Holdings OTSKY Pharmaceutical 18.62 20,73 20.47 Quest Diagnostics DGX Laboratory services 133.77 133.11 134.26 Six Flags SIX Entertainment/leisure 25.48 26.32 23.73 Sodexo SDXAY Home / Food services 21.82 22.87 16.86 Sonova Holdings SONVY Biomedical equipment 95.98 57.88 86.61 Textron TXT Industrial 62.81 95.93 56.26 Tri Pointe Homes TPH Home developer 29.14 38.66 37.88 Walmart WMT Retail 146.44 60.18 60.16 Woodward WWD Aerospace/manufacturing 107.86 154.12 150.58