"This is a very important part of our city. It will be important for us to control this population," says 42nd Ward Alderman Burton Natarus, who delivered the hotel's liquor license from city hall 20 minutes before the ceremony.

The Embassy Suites Chicago Downtown-Lakefront is a milestone for the Hilton chain, which opened its 2,001st hotel in 2001. It gives Hilton 12 hotels in the Chicago area, including six under the Embassy Suites flag. It also is the second Embassy Suites Downtown, complementing a 358-suite property further west on State Street.

"We were truly under-represented in the Downtown market," says Mark Snyder, senior vice president of brand marketing for Embassy Suites.

However, the hotel market is hardly as robust as it was even two years ago, when construction on the newest Embassy Suites began. "With the economy the way it is now, new supply will affect hotels,' concedes Steve Jung, general manager of the hotel. "But we're confident our customers will continue to prefer Embassy Suites."

A relatively new Sheraton property is directly south of his hotel, and Starwood recently renovated a 556-room former Days Inn on Lake Shore Drive. Meanwhile, a new 311-room Le Meridien is open on Michigan Avenue, two blocks west. And Marriott and, reportedly, Baymont Inns, also have their eyes on River North sites. However, the East Loop location should work to Embassy Suites' advantage, Jung says.

"For Embassy Suites, we're really two hotels in one. We're a good business hotel and a leisure hotel," Jung says. Being within walking distance to Navy Pier, an increasingly popular tourist destination, should draw families to his hotel, Jung adds.

Room rates for the suites start at $169 to $189 a night, Jung says.

The importance of the tourism industry continues to grow, Natarus says, noting the hotel's transportation service includes McCormick Place convention center as a destination.