ChicagoMarriott Downtown

William W. McCarten, chairman and CEO of DiamondRock, says thecompany remains "bullish" on the Chicago market, adding that theacquisition price represents 11.9 times the company's projected2007 hotel earnings before EBITDA. It being the second Windy Citybuy for the company, McCarten says it shows the city is "earlier inthe recovery then many other major markets."

The hotel was built in 2001 and opened under the Le Meridianbanner, a brand of White Plains-based Starwood Hotels and Resorts.In connection with the rebranding of the hotel to the ConradChicago, which officially occurred in June of this year, the hotelis undergoing a $5-million upgrade. The hotel has a lobby bar, withan outdoor terrace and views of the Magnificent Mile. Rooms measureapproximately 420 sf, and the property has 12,000 sf of meeting andconference space comprising 17 rooms.