The development of a New York hotel that Jay-Z has invested in is currently on hold as the rapper and his partners are struggling to pull in finances for the project due to the ailing economy.

Last year, Jay-Z invested in a real estate development venture called J Hotels which acquired a $66 million mid-block parcel in Chelsea, New York to build a high-end hotel.

Charles Blaichman, one of Jay-Z's partners, recently revealed to The New York Times that they have been seeking up to $370 million from various banks to begin construction but have had no luck.

"A year ago it would have seemed a reasonable amount. Not now," said Blaichman. "Even the banks who want to give us money can't."

Jay-Z and his partners aren't the only ones in the same predicament. According to research, almost $5 billion worth of property projects in New York City have been delayed or cancelled because of the  current economic crisis.

Stephen Blank, a researcher with the Urban Land Institute (a nonprofit group), says he has been advising real estate executives to 'take up golf' during the financial downturn.

“There’s no way to finance a project," Blank emphasized.