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Some of New York's biggest hotels may be caught flat-footed a rebound in demand for meeting space and rooms. Having delayed or mothballed renovation plans after business dropped steeply in late. 2001, they could find themselves at a competitive disadvantage now that bookings are picking up again.
"Here's the paradox," says Kevin H. Smith, general manager at The New Yorker Hotel, a Ramada Inn and Plaza. "When business slows down, as it did after Sept. 11, that's the time to do renovations. But if cash flow is bad and I don't have the money, how can I do renovations?"
Already, state-of-the-art hotels in Times Square-including the W, the Westin and the Hilton Times Square-have stolen business from big hotels that couldn't make planned renovations.
"With the new Times Square hotels, there's a new standard out there, and it must be met," says Lalia Rach, dean of the Center for Hospitality, Tourism and Sports Management at New York University.
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