The 15-story property, which is at 369 W. Vine St., will operatesite as an independent until the Hilton branding is complete. Theproperty had been owned by a joint venture of Blackstone and Webb,which developed the hotel about 20 years ago. Interstate also cameon when Madison recently bought into the site.

"We think there's a huge opportunity to re-flag to a Hilton,it's a nice, stable asset," Peter Lewis, president of Madison,tells GlobeSt.com. "Now, we have the 2010 Equestrian Games comingup here, and the Ryder Cup, there's a huge opportunity to gainbusiness."He says the office property is 75% leased, though "therest of the market is 90% leased, we see this as a way to increaseoccupancy as well."

Interstate has a history of minority interests in the hotels itmanages, and this is the 49th such deal for the company and thefirst with Madison, said Thomas Hewitt, Interstate's CEO, in thestatement. "We know this property well and believe it hasconsiderable long-term potential, given its excellent Downtownlocation and proximity to the convention center," he said.