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W W W. M A I N E B I Z . B I Z 3 J U N E 1 , 2 0 2 6 F RO M T H E E D I TO R Despite concerns, development continues at a brisk pace I n recent years, developers have been warned about a host of economic challenges — labor short- ages, increases in construction costs, rising inter- est rates, higher gas prices, tariffs, NIMBY and a few other headaches. Somehow, the pace of development in Maine has continued to surprise people. Take the hotel industry. e man on the street will warn you that it's overbuilt, that certainly Maine cannot sustain another hotel. And yet hotels keep getting built. Senior Writer Laurie Schreiber offers a report on the array of hotels in the works right now. Even with compelling reasons not to develop, the drum- beat of new projects continues. "It's very hard in this environment, certainly at the national level, for new projects to get built," says Matthew Arrants, principal of Arrants Co., a hotel investment and consulting firm, told Laurie. Developers are getting projects done in Maine — and Greater Portland in particular — because the numbers support development and with con- struction costs lower than other areas. Interestingly, a decade ago, Arrants predicted the rate of occupancy would fall as more hotels came online. "It didn't — so I learned not to guess on that," he says. "In theory, you do reach a point of equi- librium. But we've seen really tremendous growth in demand over the last several years. ings are looking pretty good." Hotel development is cyclical, says Sean Riley, CEO of Maine Course Hospitality Group, a hotel ownership and management company in Freeport. "It's not like the old days, with a 3% to 4% interest rate, when construction costs were lower and occupancy was skyrocketing," Riley says. "You need a good site, a good brand, a good developer. It's not for the faint of heart." Elsewhere in the issue, Staff Writer Tina Fischer goes through the recent Legislative agenda, not- ing which new laws will affect development. Don't miss the profiles of MEREDA's "2025 Notable Projects," starting on Page 16. — Peter Van Allen pvanallen@mainebiz.biz Take the hotel industry. Nearly anyone will warn you that it's overbuilt, that certainly Maine cannot sustain another hotel. And yet hotels keep getting built. Building on your ideas Contact us 207-865-4412 doten@dotens.com www.dotens.com FIND US ON Quality. Safety. Craftsmanship.