"This is a straight down the fairway value-add investment deal,"John DePaul, managing principal and CEO of NHH tells GlobeSt.com."We're buying two hotels in good locations that are in need ofrenovation and new management to improve their profitability andposition in the marketplace."

[IMGCAP(2)]While the price paid for the hotels wasn't disclosed,DePaul says "we are privately held and do not wish to disclose thatinformation. Let's just say it was significantly below theplacement costs inclusive of all transaction costs includingclosing costs and renovations." With the economy down and thedollar's value shrinking, the joint venture had a plan to invest inthe struggling market.

[IMGCAP(3)]"With our existing portfolio of hotels, we'reseeing--as others are seeing in the industry – a downturn inrevenue that we expect that to continue to the middle of '09," saysDePaul. "As revenues decline and profitability decline, valuationsalso decline. We see that as an opportunity to buy back into acyclical market."