"The short-term impact of recent events notwithstanding,Washington, DC. remains a high growth urban market with significantbarriers to entry and strong growth in room demand in all segments,including commercial transient, group and leisure/tourism over thelong term," explains LaSalle COO Michael Barnello. The property isdesigned to appeal to a segment of travelers that prefers the moreunique, trendy alternative to the bevy of chain hotels in DC.

San Francisco's The Kimpton Hotel & Restaurant Group willmanage the property. "[Kimpton officials] do a very good job ofmarketing their hotels," says Legg Mason Managing Director andLodging Analyst Rod Petrik. "When I look at the West Coast,particularly San Francisco, Kimpton has been very successful." TheDistrict consistently plays host to an international crowd, whichPetrik believes will be drawn to the hotels' European décor. As forthe timing, he concedes that this is not the perfect climate inwhich to open a hotel. "The fourth quarter is probably gong to bethe worst quarter for hotels in 10 years," he says. But Petrik doescredit LaSalle for certain timely business decisions. "What waswise--they committed to the properties in the summer--is they chosenot to come online with all four properties at once." He speculatesthat the company will likely not redevelop the two remainingproperties until the market displays signs of recovery.