The hotel features 45 luxury suites, 50,000 sf of meeting space,39,000 sf of retail space, a 4,600-sf health club and spa and fourfood and beverage outlets. Strategic Hotels forecasts that theproperty will contribute between $19 million and $21 million ofEBITDA in the last seven months of 2006 and between $32 million and$34 million in the first 12 months of ownership.

Strategic Hotels & Resorts owns and asset manages 18high-end hotels and resorts. At the time Strategic Hotels put theproperty under contract, chief executive Laurence Geller said SanFrancisco has lagged the broader market recovery and is poised forsignificant and sustainable growth. In addition, CFO James Meadtold GlobeSt.com that significant value can be added through theconversion and realignment of the retailing space, guestrooms andpublic areas.

The hotel and much of the retail space fronts Union Square, atourist Mecca that is home to the city's high-end retail shops."There is a belief that we can make more money out of the sameretail space," Mead said. With regard to the hotel's common areasand guestrooms, he said the general plan is to "add to some of therecent renovations and refine and tune the marketing strategy andthe pricing potential for the asset."