Construction of two planned hotels at Dana Point Harbor has been placed on hold after the Orange County Board of Supervisors postponed a vote on new ground leases needed to move the project forward.
During its June 23 meeting, the board voted to continue consideration of the proposed 66-year leases until Aug. 11, with several supervisors requesting additional time to review the nearly 600-page lease documents and proposed amendments introduced by Fifth District Supervisor Katrina Foley.
The leases cover the hotel, marina, commercial core and dry stack portions of the $600 million Dana Point Harbor Revitalization Project. Approval of the hotel leases is required before Dana Point Harbor Partners can secure financing and begin construction of The Doheny, a proposed 130-room luxury hotel, and The Salt Haus, a 169-room surf lodge. Both projects received approval from the California Coastal Commission in 2025.
Foley’s proposed changes include requiring a labor peace agreement for future hotel operations, creating a transition plan for employees of the existing Marina Inn, which is slated for demolition, and establishing new limits on future marina slip-fee increases.
Dana Point Harbor Partners said the delay has halted planning efforts for the hotel portion of the project. Bob Olson of RD Olson Development, one of the project’s development partners, said the new conditions leave the hotel project without a clear path to financing.
Dana Point Mayor John Gabbard also expressed disappointment with the board’s decision, noting that the revitalization project has already undergone years of review and approvals. He said further delays could jeopardize completion before the 2028 Los Angeles Olympic Games, which are expected to bring increased tourism to the region.
Foley said the brief delay is necessary to allow supervisors sufficient time to review the lease agreements and resolve outstanding issues. She emphasized that the developers remain contractually obligated to construct the two hotels and encouraged continued negotiations over the summer.
According to Dana Point Harbor Partners, work on the marina and commercial core will continue as planned while the hotel leases remain under review. If financing for the new hotels cannot be secured, the developers said they would instead renovate the existing Marina Inn. The Board of Supervisors is expected to reconsider the lease agreements at its Aug. 11 meeting.
