The JV fund will be investing in areas with high barriers toentry as well as a handful of key markets in which the REITtypically invests, Justin Boutwell, vice president of finance forLaSalle Hotel Properties, tells GlobeSt.com. These key investmentdestinations include Boston, New York City, Washington, DC,Chicago, Los Angeles, San Diego, San Francisco and Seattle. But,there's also interest in high barrier-to-entry markets like Miami,Denver, Portland and Phoenix.

According to a press release, the JV is an 85%-15% ownershipstructure, with LaSalle Investment Management kicking in themajority of equity. LaSalle Hotel Properties will receiveadditional income for providing acquisition, asset management,project redevelopment oversight and financing services.

Boutwell says the anticipated acquisition period is up to threeyears with the JV expecting to last up to seven years--a relativelyshort amount of time to acquire hotels. It is still a question,though, whether the JV will be able to acquire properties that meetits investment criteria, at least in the mid term. For severalmonths, there has been a disconnect between buyers and sellers inthe hotel industry and other asset classes due to sellers clingingto 2006 cap rates and prices. Boutwell says he will be discussingthis issue further in the company's earnings call scheduled forThursday.