But many travelers still find there's no room at the inn. So city and town governments encourage development, sometimes with tax or lease subsidies, because hotels generate spending from outside the area, can be easily taxed, and provide lower-skill jobs. The whiff of glamour around major hotels, which inherit a tradition of dispensing hospitality, good cheer, and exotic visitors, adds to the allure. But hotels are far from a sure bet, either for their owners or the areas in which they're built. Development of new hotels, moreover, has historically come in waves that produce alternating gluts and shortages of rooms.
History suggests that planning a steady new supply to accommodate shifts in demand is difficult.
MIT buys a parcel of land, west of the campus. Over the next 25 years, it continues to buy additional parcels in the neighborhood, including some that contain residential housing. 1983-86 MIT signs an agreement with Forest City Developers to develop 27 acres of the land. Forest City hires consultants to devise a Master Plan for the site. The eventual blueprint includes office and lab space, an executive conference center, and a hotel, which is to be built on land on which stands several of the residences.