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Credit crunch hits McSam

Hotel being built on West 39th Street

Sam Chang, New York's biggest hotel developer, is running low on funds as the credit crunch continues and his financial backers pull funding. Credit Suisse, Chang's main financier, has pulled back on funding while Chang's company, McSam Hotel Group, struggles to finish 25 projects under construction, as well 15 in the pipeline. Chang's developments will make up 40 percent of the 10,000 rooms expected to be added to the city's inventory over the next three years. Although Chang acknowledges occupancy rates could fall to 75 percent next year from 80 percent, but says his company can still break even. As The Real Deal reported, Chang sold three Midtown hotel sites last month, along with two other unfinished hotels in February.  [Crain's]