Experts assure the city that the deal it has hammered out withWestin, is as good as it gets. "I have personally assessed morethan 2,000 hotel deals, and this is as strong as an agreement as Ihave ever seen," says Greg Hartmann, a principal of Boulder-basedHVS International Hospitality Consulting Services. Westin will bepaid a $1.1-million management fee, which accounts for about 3% ofthe annual revenues projected from the 500-room hotel scheduled toopen in late 2003. Typically, a top-notch operator such asWestinwould charge 4% to 6% of total revenues, Hartmann says. At the endof the 15-year management agreement, the city will own a hotel withan estimated value of $175 million. Westin also will fund a workingcapital account - equal to 8% of revenues - earmarked for aperiodic refurbishing. It is considerably more than is usuallyallocated in such agreements, Hartmann says.

Taking bids from other operators would delay the project by ninemonths and it's doubtful the city would get such a good deal, VickiFowler Braunagel, deputy manager of aviation has told the DIAStapleton Committee, comprised of city council members. The pactcalls for channeling DIA funds to pay for the project because ofthe tight private financing markets for hotels. No tax dollars areused or pledged for the project, Braunagel emphasizes. She alsopredicts the hotel will generate about $57 million in additionaltax revenues to Denver over the next 15 years.

Under an earlier lease agreement approved by the council, Westinhad been ticketed to receive about $9 million of lodgers' taxesover 15 years in exchange for creating additional jobs. That moneynow will flow to Denver's General Fund.