LOS ANGELES In the wake of Federal Reserve Chairman Alan Greenspan s report that economic growth is, probably very close to zero at this particular moment, hotel real estate investors are finding it harder than ever to get banks to lend money.
There isn t a lot of money chasing new hotel deals, said Steve Bollenbach, CEO/Hilton Hotels Corp.
Hilton Hotels Corp. in August projected it would open more than 400 hotels within the next two years, but last week the company cut its forecast in half. Hilton said the company s lenders are concerned about predictions of a slowing economy, and that many banks are scrutinizing every loan more carefully to avoid a repeat of the economic recession of the early 1990s. (1/31/01)
SOURCE: Bloomberg News