Despite the fact that a new study conducted by the American Hotel & Motel Association (AH&MA) and PriceWaterhouseCoopers reveals that hotel-industry mortgage default rates have fallen steeply since 1992 - and remained at historically low levels since 1996 - market observers say that the troubled sector is certainly not out of the woods yet.

"I don't think you can make a sweeping generalization saying that the pressure is gone in the hotel sector," said Peter Kozel, a director at Standard and Poor's Ratings Services. "There have been recent defaults and there has been a lot of supply growth. But more importantly, it differs from region to region."

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