GlobeSt.com: Is the Orlando hotel sector in any danger of being overbuilt?

Rosen: Occupancies in this market have been on the decline the past several years, ever since Sept. 11, 2001. To be quite candid, our inventory has been pretty flat since then. We recently added a fairly large property to International Drive and the Peabody has also added rooms near the Orange County Convention Center. The addition of those roughly 2,500 rooms will not be a negative. It will help us from a marketing perspective to have more rooms contiguous to our convention center.

As occupancies decline, hotels that are struggling will close. That's sort of the natural evolutionary process. Financing is difficult to obtain nowadays and that in and of itself will mitigate development. As hotels close, we will stabilize at a particular inventory that is probably O.K.