The rules of hotel development have changed since the recession hit. Investors are tougher and want a sure thing so they value experience, and they also are more strategic when it comes to selecting a market. "A more demanding regulatory environment has left banks cautious, resulting in a diminished ability to place debt. Hotel development is still perceived as a risky lending category, credit is still difficult to come by and although construction lending has loosened up a bit, there remains a generally restrictive financing environment," notes Robert Habeeb of First Hospitality Group.

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