Along with the travel boost, he cites other factors for thedramatic improvement in Downtown's hotel market in 2004: "DowntownLos Angeles had been one of the poorest performing market inSouthern California until this year, but 2004 has been a turnaroundyear because of the redevelopment and revitalization of theDowntown area because of the effects of the Disney Concert Hall andnumerous other projects," Reay tells GlobeSt.com. Another factor is"the bullish outlook of investors, who have paid some record pricesfor Downtown hotels as well as other commercial properties." Atlasexpects 2005 to be a very strong year for Downtown, with anincrease in conventions and a gathering momentum that will beproduced by the new 1,200-room hotel project near the StaplesCenter.Another factor that materialized in the hotel market thisyear was the trend toward conversion of some hotels tocondominiums, the effects of which have yet to play out. But thetrend has already helped to push prices up in Downtown L.A. andCentury City with the news that the Checkers in Downtown and theSt. Regis in Century City will be going condo. "The condo converterin every single case can pay more for the hotel than a hoteloperator can," Reay says.