Businesses often cluster – hotels near convention centers, pharmacies near hospitals. But dog hotels in Hollywood?

Indeed, Highland Avenue south of Santa Monica Boulevard has become home to a small pack of dog businesses. Pooch Hotel opened earlier this month, next to LA Dogworks and across from D Pet Hotels. All three compete to offer similar services, such as boarding, day care and grooming. They even provide canine spa services, such as hot body wraps, “pawdicures” and rejuvenating massages.

Pooch Hotel, recently acquired by San Diego-based Petco, has three other locations in the country – one in Sunnyvale and two in Chicago. Founder Robin Tomb has always wanted to open a shop here.

“Everyone in L.A loves to be catered to,” she said.

Tomb said that she chose the site not out of desire to compete with the other dog businesses but because her business was an allowed use.

“Zoning is very difficult when it comes to animal facilities,” she said. “The reason why you see two, three or even four in an area is because it’s where they allow for pet facilities to be.”

D Pet Hotels, which opened in 2007, declined to comment on the new shop down the street. But Pooch Hotel and LA Dogworks aren’t overly worried about any dog-eat-dog competition.

“I’m concerned to a point,” said LA Dogworks owner Andrew Rosenthal, who has had his business for eight years. “But from what I’ve seen so far, we have a fairly loyal clientele.”

“There’s a large demand,” said Charles Simpson, director of operations at Pooch Hotel, “and the market is big enough to support all of us.”