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Major Developer Says Condo Hotel Trend is Over

Up and down San Diego's coast line, developers have been fighting the Coastal Commission to get permits to build so-called "condo hotels." But now, one of San Diego's major developers says the condo h

Up and down San Diego's coast line, developers have been fighting the Coastal Commission to get permits to build so-called "condo hotels." But now, one of San Diego's major developers says the condo hotel trend is over. KPBS reporter Alison St John has more.

Developers originally liked combining condo ownership with hotel rooms because it helped them get up-front financing for major projects.

But the California Coastal Commission has dug in its heels, saying condo hotels are a way of introducing private ownership along the coast, where public access should be the priority.

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San Diego developer Doug Manchester proposed one of the biggest condo hotel projects on the waterfront downtown.

But Manchester spokesman Perry Dealy says the developer no longer plans to include condos in his project.

Dealy : The age of the condo hotel has come to a screeching halt. Doesn't mean that there won’t be some projects but by and large they are being eliminated from new project development, they are eliminating the condo component from the hotel.

Dealy says the liability of dissatisfied condo owners turned out to be greater than the benefits of up front financing. He says lenders are now shying away from such developments.

Dealy argues that Manchester's waterfront development does not need a Coastal Commission Permit because the permit was already granted in 1992.

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The Coastal Commission disagrees and has not yet issued its decision on the project.

Alison St John, KPBS News.