Big dreams for hotels are falling flat

Big dreams for hotels are falling flat

After the residential real estate market peaked in the summer of 2005 and the commercial market began to cool a year later, hotels enjoyed a brief period in which they were viewed as the hottest commodity in a rapidly shrinking real estate world.

Developers of all dimensions announced plans for construction and deep-pocketed investors flew into the region to make big-dollar acquisitions.

The Blackstone Group descended from New York in 2007 to grab the Sarasota Hyatt for $65 million, while Rockwood Capital LLC dropped down from Connecticut to scoop up the Holiday Inn Lido Beach and the Holiday Inn Riverfront in Bradenton for $41 million.