Montgomery says there are a number of reasons that Downtown was the brightest submarket in 2005. That list includes the expanded Colorado Convention Center, which doubles its size; the overall positive image of Downtown; the continued impact of LoDo, with its sport venues, restaurants, lodging and nightlife; the revitalization along 17th Street with restaurants, hotels and housing joining the traditional financial district of Denver; the Denver Pavilions retail and entertainment complex; continued new and residential projects just outside of the Central Business District ; and new residential in the Uptown neighborhood, just east of Downtown.

Also, the opening last month of the 1,100-room Hyatt Regency at the Convention Center "leads the way into a new era in the lodging and tourism industry in Metro Denver," states the report. "We believe that the entire metro area is uniquely positioned to explode in terms of captured demand over the next three to five years."

However, Montgomery does provide some warnings. "The only real obstacle to future growth in lodging demand in Metro Denver are issues that deal with planning for the future, growth issues and negative perceptions of the area," Montgomery notes. He says that major issues that must be addressed include appropriate levels statewide and in the metro area to promote tourism; ensuring the stability of United Airlines, the No. 1 hub at the Denver International Airport; significantly increased employment; and the development of transportation links between DIA and Downtown.