The Palm Desert Hotel chain has announced it is moving away from its iconic hotel theme park in a bid to boost tourism and attract new guests.
In a statement on Tuesday, the chain said it would be moving to “a more affordable hotel theme” at the Palm Desert Resort, in the San Tan Valley, “which will provide a more relaxed and comfortable atmosphere” for visitors.
The new hotel will be open for a one-week period starting on June 7.
The move is a boon for hotelier Steve Heffernan, who said the move “opens up a new market for us.”
“It will allow us to bring a higher level of quality and comfort to our guests and visitors,” HeffERNan said in a statement.
“We’re very excited about this opportunity to create more and more excitement for our guests.”
The Palm desert has become known for its resort hotels, such as the $250-a-night Palm Desert Motel and the $100-a “carpool” hotel at the nearby Lake Worth.
The desert city is also home to a popular beachfront casino and a string of upscale resorts.
The chain said the new hotel is slated to open in the spring.
A spokesperson said it will remain open until June.
In recent years, hotel occupancy rates have dropped in the resort, which is one of the most expensive resorts in the country.
That’s partly because of a recent recession, and partly because there are fewer hotel rooms available.
According to a 2017 analysis by the California Department of Finance, hotel room rates in the state have dropped by more than $600 per night in the past two years, with hotel occupancy dropping by nearly 20 percent.
The Palm Desert has been struggling with a severe lack of hotel rooms, as hotel occupancy declined by nearly 40 percent between 2015 and 2016, according to data from the state.
The decline in occupancy rates has also hurt business owners.
The hotel’s occupancy has fallen more than 50 percent since 2010.
The new hotel could bring an influx of tourists to the area.
The chain has plans to open several hotels in the desert city in the coming years.