CITY HALL — In a nod to the downtrodden economy, the City Council on Tuesday granted a three-year extension to developers seeking to expand Hotel Amarano, agreeing that it would be unfeasible to expand the luxury facility by 32 guest rooms and an outdoor swimming pool as occupancy rates continue to plummet.

Formerly the Graciela Burbank, the 99-room full-service boutique hotel, is in the Media District across the street from Warner Bros. Studio Ranch and draws much of its clientele from the entertainment industry, said Michael Hastings, former Burbank mayor and advisor to Boston-based LaSalle Hotel Properties.

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