This is kind of an interesting discussion point. It's definitely a challenge to find land in downtown core to put up new towers. And even then, I think most are residential though, the trend seems to be mixed usage nowadays.

I'm not sure what the supply is relative to demand but I agree there doesn't seem to have been any new major hotels coming online since a small spree (Shangi-La and Fairmont Pacific Rim) prior to the 2010 Olympics. Trump Tower (which took over from the Ritz-Carlton development which was put on hold during the 2008-09 downturn) is slated to come online this year but all these three are pretty premium brands; not necessarily helping with the "why so expensive" issue.