"It's a very tight market [for financing] right now," agreesJohn Connolly, whose Sawyer Enterprises is proposing a 432-roomLoew's Hotel near Boston's Chinatown. While the project isconsidered among the strongest in the pipeline, Connolly saysconstruction has been pushed back to early 2001.

Other Boston inns that have stalled include a 195-room projecton Battery Wharf, the 149-room Hotel Kenmore near Fenway Park, anddeveloper W. Kevin Fitzgerald's proposed hotel just off BostonCommon, one slated for the top of a planned 200,000-sf officebuilding. Another hotel permitted near Boston Common has alreadybeen abandoned in favor of condominiums.

Connolly traces the difficulties to August 1998, when globaleconomic concerns disrupted Wall Street, especially the commercialmortgage-backed securities market that had been financingsubstantial hotel activity nationally. While the overseas crisiseventually quieted, public capital has remained on the sidelines.Fears of overbuilding and rising interest rates have beencontributing factors, according to Connolly.