New Scientist Article, a private firm sends model inflatable space station into orbit 'flawlessly'.
More interestingly they need a ferry to get passengers into orbit and are offering a huge reward;
I'm kind of interested in the idea of inflatables in space; there's some been some talk of using balloons to explore Mars. It seems like the perfect way to get something really big out of a really tiny, light package.
I think I'm going to be skeptical of space hotels until I see photos of the view. It's the fact that they call that zero-G plane "the Vomit Comet" that seems like a limiting factor on willing millionaire "early adopter" types.
Which isn't to say that the inheritors to SpaceShip One aren't already being built in some desert lab somewhere -- I'd bet money (but not $50 mill) that they'll have their ship within 10 years.