Residents of Laguna Woods Village, a 55-and-over community, feared the Ayres Hotel would become a virus hotspot and pose a major risk to the mostly older community. The retirement community makes up most of the city of Laguna Woods.
Opponents of the plan say protests and threats of a lawsuit led to the reversal.
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"Our village is protected and we can move forward in a safe manner," said Jeff Parker, CEO of Laguna Woods Village.
The Ayres Hotel chain released a statement Monday saying it listened to it's neighbors in the city of Laguna Woods and was successfully able to get out of its contract with the county.
The hotel had plans to lease the 138-bed property to the county to become a temporary housing and medical facility for homeless people who have already contracted COVID-19 or are at high risk.