Along with the travel boost, he cites other factors for the dramatic improvement in Downtown's hotel market in 2004: "Downtown Los Angeles had been one of the poorest performing market in Southern California until this year, but 2004 has been a turnaround year because of the redevelopment and revitalization of the Downtown area because of the effects of the Disney Concert Hall and numerous other projects," Reay tells GlobeSt.com. Another factor is "the bullish outlook of investors, who have paid some record prices for Downtown hotels as well as other commercial properties." Atlas expects 2005 to be a very strong year for Downtown, with an increase in conventions and a gathering momentum that will be produced by the new 1,200-room hotel project near the Staples Center.Another factor that materialized in the hotel market this year was the trend toward conversion of some hotels to condominiums, the effects of which have yet to play out. But the trend has already helped to push prices up in Downtown L.A. and Century City with the news that the Checkers in Downtown and the St. Regis in Century City will be going condo. "The condo converter in every single case can pay more for the hotel than a hotel operator can," Reay says.