The hotel is scheduled to open in summer 2008. Sage HospitalityEVP Ken Geist tells GlobeSt.com the cost to acquire floors sixthrough 16 was $20.5 million. In the past year, the project's totaldevelopment cost has risen from $108 million to $118 million, hesays, due to a combination of factors. "Construction costs,expanded scope, schedule changes, more interest expense, and a lotmore legal expanse related to the New Markets Tax Credit," Geistsays.

The project won $72.5 million of New Markets Tax Credits--thelargest single allocation of federal New Markets Tax Credits in thecountry--which netted Sage about $23 million in cash. The city'sPortland Development Commission also is assisting in the project,providing $14 million through its seismic loan program.

Starwood's high-end brand, the Luxury Collection is new to themarket and will compete for room nights with the likes of theWestin, another Starwood brand, and the Heathman. There arecurrently eight Luxury Collection hotels in the US.