Richard Friedman, of Carpenter & Co., Starwood's local partner, says "we're in the process of getting financing. We are pursuing all avenues of conventional financing." Friedman says that the company has until the first of December to secure financing.

Capital markets are notoriously difficult for hotel financing and convention center hotels are even harder to finance because the hotel's success is so dependent on the success of the convention center. The recent tightening in the capital markets has made the prospect of putting together financing for this hotel that much more difficult. Typically, convention center hotels require major public subsidies.

The city has borrowed $157 million to acquire the 60-acre convention hall site, which includes space for the 1,120-room hotel. Edward J. Collins, the city's chief financial officer, says that his office has had informal discussions with Starwood over the possibility of Starwood winning special treatment of its property tax obligation under Chapter 121A of state law. The statute "gives them predictability of their tax payments," says Collins, "but it is not going to make or break their financing." Adds Collins, "our position is there will be no subsidies."