All of this said, he continues, "Recession? No--I think there's going to be a small slowdown. This year's election didn't help things, but saying there will be a recession becomes a self-fulfilling prophecy. There may be a 5% to 10% loss this year in the tenant fit-out market. McGraw Hill is predicting a loss in the construction sector in terms of infrastructure." Levien says there will be a long-term loss in corporate interiors for sure, but with projects such as the Harvard Club and Bronx Botanical Gardens on its plate, his company will fare well.

Barry Mann of the New Yorker Hotel agrees. He says that while there may be a slowdown, he feels confident that his hotel will continue to do well. Mann says, "In the year 2000 there was 84% occupancy here in the city, but we do expect a bit of a drop of about 6%."

He explains that with economic tough times here and abroad, noting such factors as the falling London stocks and the weak franc, "most hotels try to attract" guests by lowering prices. "Six or seven years ago there was a price war here in New York. Most three or four star properties felt the pinch--with so many hotels diminishing everyone's revenue it can be hard."

He says his hotel's situation is "rather unique" as it was recently "reopened in 1994," changing its "market mix, attracting corporate travelers, associations, conventions." He says their job is easier being in the Penn Station district, which he says has improved drastically in the last couple of years, and is close to the Jacob Javits Convention Center.

"The hotel business is cyclical; I've seen evidence of this in my 30 years in the hotel business. New York is rather unique as a city too because it will continue to be a business market. People will come here because they have to come here to do business," he notes.