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Hotels do not bring people downtown, all they do is come to the hotel, go to their convention, and back on a plane to where ever.
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Convention goers need to eat and get bored in the evenings. Hotels are great for vitality compared to a similar sized condo or apartment.
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I would hate to be a person from another province driving here.
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Fortunately Winnipeg is pretty far from major population centres. The market will bare what the market will bare. Last time I was in Winnipeg stayed in the Humphry Inn - was cheap and good. I am not sure what kind of hotel you are looking for, but $60 a night places - I am pretty sure it would go broke pretty fast. The time before was in a suburban hole, the Winnipeg Thriftlodge. The $15 dollars saved was not worth it.