Hotel trades have been a rare breed in this market. This transactionfollows a $9-million trade of a boutique hotel earlierthis month. However these sales hardly make a trend--and certainly not one in which the hotel space can connect dots to determine pricing andvaluations, David P. Fuller, principal with HVS Consulting, tellsGlobeSt.com.

These transactions "are not going to open any floodgates in terms ofhotel transactions in the DC area. Right now the DC area--particularly the District--is a sellers' market," Fullers says, adding that there is plenty of interest in acquiring DC area hotels--he has fielded a few offers on behalf of clients recently, from overseas investors.

Hotels in this market are performing well and owners tend to belong-term buy and hold investors, he explains. "So why would anyonewant to sell right now, unless they have to."The next sales, Fuller predicts, will likely be because the owners didindeed have to sell. "I think we will see some deals come to marketwhere the owner refinanced in 2006 or 2007."

As it happens, the Sofitel transaction was not a distressed sale, aLaSalle spokesman tells GlobeSt.com. "It was a JV, but we are notreleasing the name of the owner per its request."

The spokesperson says LaSalle intends to hold the Sofitel for a longterm, in keeping with its investment strategy. "We anticipate it willbe with us for a long time. And we are not planning any brand ormanagement changes--it works well as it is."