Dana Point Harbor Revitalization Hits Another Roadblock as Hotel Plans Stall

The redevelopment of Dana Point Harbor is facing another delay as Orange County leaders and the developer continue to disagree over the terms of new leases needed to move forward with two proposed hotels.

The broader harbor revitalization is not completely on hold. Construction on the marina and commercial core continues, but the hotel portion of the project has been put on pause while county supervisors and Dana Point Harbor Partners work through the terms of a new 66-year ground lease.

The latest delay came August 11, when the Orange County Board of Supervisors postponed a vote for the second time. The board is scheduled to revisit the proposed agreements on August 25, 2026.

The decision has become a major point of contention for a project that has already been years in the making.

From a $337 Million Project to More Than $700 Million

When Orange County first approved the redevelopment agreement with Dana Point Harbor Partners in 2018, the project was expected to cost approximately $337 million.

Since then, the price has more than doubled.

Delays related to the COVID-19 pandemic, inflation, rising construction costs and regulatory issues have pushed the estimated investment to more than $700 million, according to recent reporting on the project.

Now, Dana Point Harbor Partners says it needs new lease agreements with the county to secure financing for the two proposed hotels.

The developer had hoped to begin construction this summer and originally targeted completion ahead of the 2028 Los Angeles Olympics. That deadline has now been missed, according to R.D. Olson Development President Bob Olson.

“Unfortunately, we missed that window,” Olson told the Orange County Business Journal.

From a $337 Million Project to More Than $700 Million

The proposed hotel development would add nearly 300 rooms to Dana Point Harbor.

The plans call for The Doheny, a 130-room upscale boutique hotel, and Salthaus, a 169-room select-service hotel designed to provide a more affordable option for visitors.

The hotel component has already received approval from the California Coastal Commission and Dana Point City Council.

But approval of the project itself is different from securing the financing needed to build it.

Dana Point Harbor Partners has said the current lease structure does not allow the developers to obtain the necessary construction financing for the new hotels. The proposed lease changes would create separate agreements that lenders could use to finance the projects.

Without those agreements, the hotel construction cannot move forward as planned.

County Supervisors Want More From the Deal

County supervisors have largely expressed support for the harbor’s revitalization, but several have questioned whether the proposed agreements provide enough protections and benefits for Orange County.

One of the biggest concerns involves marina slip rates.

Local boaters have argued that slip fees have increased dramatically over the past several years. According to the Dana Point Boaters Association, a slip for a 30-foot boat that cost approximately $546 per month in 2021 now costs around $936 — an increase of about 58%.

Larger boats have experienced even greater increases.

Supervisors have also raised concerns about employees at the existing Dana Point Marina Inn, which would eventually be replaced by the new hotel development.

The developer has said the approximately 19 employees at the Marina Inn would be offered opportunities at other hotels operated by the same management company and would have an opportunity to return when the new hotels open. Some supervisors, however, have pushed for those commitments to be put in writing.

Other issues raised during negotiations have included additional payments to the county, meeting space, harbor patrol facilities and other improvements.

So, Is the Dana Point Harbor Revitalization Actually on Hold?

Not entirely.

This is perhaps the most important distinction as the debate over the hotels continues.

The marina and commercial portions of the revitalization are still moving forward.

The harbor’s official project information says the waterside improvements are being completed in 15 phases. Phase 10 was completed in December 2025, and Phase 11 opened in May 2026.

Construction on the Commercial Core is also continuing. The first two phases included the new three-level, 984-space parking structure, underground utilities and a new harbor entrance. Phase 3 began in early 2026, with Phase 4 expected to begin in fall 2026.

The developer has estimated that the overall harbor project is approximately 70% complete, while the hotel portion remains behind the rest of the redevelopment.

What Happens Next?

The Orange County Board of Supervisors is expected to take up the proposed hotel leases again on August 25.

The outcome could determine whether the developers can move forward with financing and eventually begin construction on the two hotels.

For Dana Point, the decision is significant.

The harbor is one of the city’s defining coastal assets, and the revitalization is expected to reshape the waterfront with new docks, restaurants, retail, public spaces, pedestrian improvements and hotel accommodations.

Much of that transformation is already underway.

But the proposed hotels remain the largest unresolved piece of the project.

For now, Dana Point Harbor is moving forward — just not all at once. The marina and commercial core continue to take shape, while county leaders and the development team work through the disagreements that have put the hotel portion of the revitalization on hold.

The next major decision comes August 25.