With financing markets tightening, one questions that arises is whether or not construction projects still in development will be completed, or whether those projects will be put on hold. One of analysts speaks this week about this situation with regard to hotels:
Mr. Loeb: To drill down to hotels, the industry is still seeing a fairly high degree of development activity. Some of that activity is early-stage development, not yet breaking ground. Some of those projects that are in development but haven’t yet begun construction won’t be financed; invariably loose financing markets create a lot of development financing, and tighter financing markets make it much harder to get development financing. So I think we’re going to hear about more and more projects that are in the development pipeline being put on hold, but others that have started construction will continue to be built because they were already financed or already under construction. We will see those hotels open.
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