The California Coastal Commission next year is scheduled to consider Manchester Resorts' plans for the resort, approved by the Oceanside City Council recently. But funding large hotel projects, already difficult, became nearly impossible after Sept. 11.

The Marriott and Hyatt chains have shed hundreds of jobs in recent weeks. Hotel occupancies have been down as low as 30% since the terrorist attack. Prior to the attack, Manchester received funding for a 750-room expansion of its Hyatt near the waterfront. Financing is being provided by the Teachers Insurance and Annuity Association and the New York State Teachers Retirement System.

However, analysts say the Oceanside resort relies on tourism rather than the convention business done by the San Diego Hyatt. Robert Rauch, a hotel analyst with Interbank-Brener, has said the Hyatt could be the last financing of a hotel project of that size for at least a year.