8 Hoteliers have ambitious expansion plans, but will be challenged to get their siting right. Conservatism in the capital markets may be the best tonic. The weaknesses we see are nowhere near as threatening as the glut that arose in the 80s. It turns out that big cities are not relics of the 19th Century, but possess important advantages in the information age. It is no accident that the areas where technology is most effectively translated into business opportunity are also some of the most robust real estate markets.
Cost structures are exceptionally high in California and the Northeast.
Businesses are likely to look at the Midwest and the South more avidly through 2005. Click here for a complete, downloadable version of the 2001 Market Forecast.