LAObserved reported yesterday that the Wilshire-Gayley plan is moving along, with an architect hired to deal with the odd triangular shape of the site. (There is a further link in the LAObserved article to a more detailed piece on the proposed hotel.)
You can find the article at http://www.laobserved.com/archive/2011/08/westwood_village_hotel_wo.php
Readers of this blog will also know that UCLA has been proposing to build a 280-room hotel/conference center where the Faculty Center is now located. If built, that hotel would have to compete for business with existing Westwood-area hotels, possibly including this new one.
In short, in Westwood Village things are moving along. On campus, with money tight, it might be advisable to slow down.
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