The City and David Taylor paid for the project in large part byselling $96 million in 30-year revenue bonds in 1999. In addition,the city contributed a 700-space parking garage at 13th and $8million in cash while Taylor and his partners contributed thehistoric Sacramento Public Market building at 13th and J streets,which now houses the public spaces and meeting rooms of thehotel.

David Taylor Interests COO Roger Kittredge tells GlobeSt.comthat through the first three months of 2008 the hotel produced anaverage daily room rate of $158.26, revenue per available room of$114.66 and an average occupancy of 72.5%. The same year-earlierperiod saw revPAR and ADR both 5% higher. Average occupancy wasalso down, falling to 72.5% from 76.5% in the first quarter of2007.

Kittredge attributed the slowdown to the slowdown in theeconomy. "But it's a great property with really good potential," hesays, "It is well positioned in the market as one of only twofour-star hotels adjacent to the convention center," Kittredgesays. "When the economy comes back you'll see all these numbers goup and it will hit the project performance targets."