"This is an exceptional opportunity to acquire a largeconcentration of guestrooms with significant upside potential inone of the strongest lodging markets in the nation," says ArthurAdler, managing director, Americas, of Jones Lang LaSalle Hotels."These hotels are available for purchase as a portfolio orindividually, and all are prime candidates for upbranding andrepositioning." The seller is AGCCM Hotels LLC, a partnership offunds based in Connecticut and New York.

Investors are keen to develop and buy hotel properties inWashington DC for several reasons, says Amelia Lim, an associatewith Jones Lang LaSalle.Hotel occupancy rates have climbed to morethan 70%, and annual room rates have posted a compound annualgrowth rate of 4.8% since 1994.

The hospitality industry also expects to benefit from theconstruction of a new $750-million, 2.2-million-sf conventioncenter, which is expected to open March 2003.