His locally-based brokerage firm Dundon & Co. is known forclosing hotel deals, whether it's a disposition or a development.Indeed, the city's most well-known downtown hotel happenings oflate - expansion of the Hilton Hotel, development of the ResidenceInn by Marriott at Riverplace and the Heathman Hotel sale - haveall involved Dundon & Co.

So when the FDIC last week warned lending institutions ofpossible hotel overbuilding in the area, GlobeSt.com got Dundon onthe phone to talk about the state of the Portland hospitalitymarket. For one, says Dundon, the development pipeline isrelatively dry. In the company's March report, some 12 hotels(1,100 rooms) were under construction. Now, says Dundon,construction has slowed to five hotels and closer to 800 rooms.

Couple that with lots of new room demand being created by a boomin office and retail development region wide, and occupancy ratesthat have been shrinking for the last couple of years should nowbegin to stabilize, if not turn upward, Dundon says. Of course,that doesn't mean they won't eventually go down again.