Despite a downturn in the economy, the hotel boom in Chelsea continues to attract developers and investors alike. NY1's Shazia Khan filed the following report.

It's home to the Highline, dozens of art galleries and the Flower and Garment Districts . These days, Chelsea is also home to a booming hotel scene.

"It's a byproduct of what has happened to this neighborhood. What's happened is it's been transformative," said Robert Freedman of First Service Williams.

In the past year, the Gem Hotel Chelsea, the Doubletree Hotel Chelsea NYC and the Hilton Garden Inn Chelsea hotel all opened in the neighborhood. The year-old, 124 room Wyndham Garden Hotel Chelsea on 24th Street will soon be joined by another Wyndham hotel just a few blocks away. Jeff Wagoner, president of Wyndham Hotels and Resorts says Fashion 26 is on track for a mid January opening

"This hotel will be 280 rooms. It's a full service hotel, it's all about fashion here, so when you walk around the hotel, you're going to see buttons you're going to see spools," Wagoner said.

Hotel Indigo on 28th Street is the latest addition to Chelsea. The 122 room hotel features a restaurant and a rooftop lounge. Morris Moinian, president and founder of the Fortuna Realty Group is the Indigo's developer and operator.

"Unlike being on the main avenues and paying a premium times two, this type of area has always been affordable and now is coming up to par to everywhere else in New York City," Moinian said.

Moinian admits securing financing for the more than $60 million project was not easy in the current economic climate.

"I had to use a substantial amount of personal resources and I had to have a lot more meetings with my lenders in this particular case," Moinian said said.

While Moinian was able to bring his hotel to the finish line, Freedman says the inability to obtain financing on ground up developments has slowed or stopped a number of other projects.

On 510 West 22nd Street, entertainment mogul Jay Z was to collaborate with two developers to open the first of a chain of J hotels. Announced in 2007, the project has yet to take off.

For those currently up and running, the hope is that they will continue to attract guests from both the metropolitan area looking for a night out as well as those from across the country and abroad.