The worldwide effects of the recession seems not to have stayed the hands of developers around the world.

Europe has endured steep revpar cuts akin to the US as a recent report in the Wall Street Journal details: "occupancies fell 8.9% in the first three months of the year compared to the same period last year, according to STR Global, an industry research group. Hardest hit were those in Eastern Europe, down 19%, and southern Europe, down 16%."

Yet as BusinessWeek reports "big chains such as Intercontinental, Marriott and Starwood were now launching niche luxury brands in Europe, in a bid to offer clients more glamour for the money they were prepared to spend on hotels. Last month, British-based Intercontinental opened its first boutique hotel in London, named Indigo.

Marriott International was also launching a boutique brand in 2010, with hotels set to open in Paris, Madrid, as well as Washington, Chicago and Los Angeles. Sheraton-owner, Starwood plans to open its first European luxury hotel in Barcelona this year and two in London next year."

One of the fastest growing hotel markets, India has seen the sharpest occupancy drops since the financial crisis and "major hotel chains have slashed room charges by up to 30 per cent because of falling occupancy rates on account of the recession." But a (well-founded) belief in the country's overall potential sees a continual spate of development deals. Le Meridien (Starwood) plans no less than five new hotels  Local real estate major Emaar MGF launched yet another hotel in Jaipur and another regional player in the south of India, the Muthoot Pappachan group, plans a several hotels there.

The US is not to be outdone with the Washington Post reporting that Disney is planning a 500 room resort outside Washington D.C. Also in the fray in the big league category is Kansas City with its 1000 room hotel proposal downtown.

Like most others these projects, if they come to fruition, are planning on opening in a revived economy at least two years hence.

Vijay is Chief Operating Officer and part-founder of Apple Core Hotels- a chain of 5 midtown Manhattan hotels offering value and comfort in the heart of the city.Member of the board of Directors - Hotel Association of New York.

www.vijaydandapani.com