Previously, Downtoen and the financial district specificallywere highly populated by week-day traffic but mostly empty on theweekend, but increased tourism, a tightening office market and theaddition of several thousand new residents to the area are allfactors driving additional people to the area and subsequentlydriving the hotel market.

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Jeffrey Davis, a senior vice president at Jones Lang LaSalleHotels, said the hotel boom is a trend that is happening all overManhattan as a result of the slowing condo conversions. In the lastsix or seven months, "There's been a pendulum swing of everybodylooking at doing hotels."

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Prior to the swing, most developments combined hotel units withresidential condominiums to meet the demand for condos. But as thetrend cooled across the country hotel development came once againto the forefront. "We're seeing a lot more interest since 9/11because there is a lot more money and the banks are willing to lendon hotels again."

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At this point, Deutsch says most of the hotels being developedare small to mid-sized, but adds that larger hotels and ones thatcontain conference space are required to meet the area's needs. Inthe next two to five years the majority of the planned hotels willcome online. Overall the new projects are an equal mix of ground-updevelopment and renovations from other property types.

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Deutsch says that the hotels also vary in price points and someof the planned developments are among the trendier hotel brands. Hecites the newly planned W Hotel, being developed by Joseph Moinianat 123 Washington St. as an example of a trendy hotel coming to thearea.

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Also on the drawing board are hotels projects at 217 Pearl St.,126 Water St., 99 Washington St., 100 Greenwich St., 50 TrinityPl., 20 Maiden Ln., 8 Stone St. and 33 Beekman St.

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Several hotels are also being significantly renovated to turnthem into luxury spaces. For example, the 138-key Holiday Inn WallStreet was purchased by LaSalle Hotel Properties and is about toundergo a $60 million renovation project over the next 18months.

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That while all the projects in the pipeline will probably notcome to fruition, Deutsch says, "For every project that falls offanother will pick up."

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