The extended down turn in the real estate and hotel industries during the late 1980s, early 1990s, and again in the early 2000s prompted many investors to steer clear of luxury hotels. Over-building, over-investment and over-financing by developers and lenders unfamiliar with the hotel industry created an oversupply of available hotel rooms resulting in reduced room rates, low occupancy levels and distressed properties. The depressed overall economy also caused pessimism in the hotel industry due to lack of available capital and lower property values.