Anaheim is set to demolish the Rainbow Inn, marking the fourth motel demolition on Beach Boulevard since 2021. This action is part of a broader initiative known as Rebuild Beach. The city purchased the Rainbow Inn for $6.9 million from Dhanuba Hospitality Inc., and the demolition will begin on Thursday.
The former motel, which opened in 1984, occupies 29,000 square feet at 831 S. Beach Blvd., near Ball Road. After acquiring the property, Anaheim’s Housing Authority closed its operations and relocated approximately ten long-term tenants.
The site of the Rainbow Inn will be combined with two adjacent parcels acquired by the city to create a 2.7-acre redevelopment area. This project follows previous demolitions of the Covered Wagon Motel in 2023 and Anaheim Lodge in 2024.
Plans for this combined site include up to 120 affordable apartments and about 15 townhomes available at market prices, with some reserved for first-time buyers. Construction could begin as early as 2026.
Since starting these efforts in 2021, Anaheim has reduced the number of motels along its stretch of Beach Boulevard from eighteen to thirteen. The city aims to replace outdated lodgings with new homes and businesses while addressing issues such as prostitution and drug-related crimes.
“Anaheim welcomes well-run, lawful motels as part of our efforts to rebuild Beach,” said a city spokesperson. However, without sufficient traveler demand, many existing motels have become sites for illegal activities.
In recent years, Anaheim has implemented various measures along Beach Boulevard including undergrounding utility lines and enhancing street lighting while also managing daily homeless outreach programs and enforcing laws against crime.
For more information on these initiatives, visit Anaheim.net/RebuildBeach.
