Construction on the hotel, which will be located next to the World Trade Center in Boston, was scheduled to begin this summer but is reportedly being pushed to the middle of next year. Developers Joseph Fallon and Joseph Corcoran did not return calls by presstime but a source in the industry tells GlobeSt.com that "they can't start anything pending financing and no one is getting hotel financing now. It's the same systemic problem."
Reportedly, lenders don't want to finance more than 50% of the $100 million project, which, says the industry source, "means they don't want to finance the project. It's the equity side that is tough."
The 1,120-room headquarters hotel that would be connected to the convention center is also facing financial difficulties and delays. If both hotels are pushed off a year till 2005 and the $800 million convention center manages to open on time, in 2004, it could have severe repercussions on the center's ability to succeed.
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