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Article: Borough hotels a risky business.
- Article from:
- Real Estate Weekly
- Article date:
- November 7, 2007
- Author:
CopyrightCOPYRIGHT 2007 Hagedorn Publication. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Hotel development is blanketing not only Manhattan, where 72 new hotels are in the works, but the City's boroughs; 10 projects are planned for Brooklyn alone. But those in the know believe these secondary and tertiary markets could be less than hospitable for developers. The borough hotel boom may prove too much, too soon.
The tightening credit market has triggered conservative financing for hotel projects nationwide. Experts say the Manhattan market can sustain a capital slowdown because of its global draw but brows have been raised over the economic viability of the hospitality sector in New York's surrounding neighborhoods.
"There are a lot of hotels ...