CHICAGO-The West is investing in the Midwest, as twoCalifornia-based investors have purchased downtown Chicago hotelsthis week in separate deals. Aliso Viejo, CA-based SunstoneHotel Investors is buying the 417-room WyndhamChicago for $88.4 million to turn it into a Hyatt, and LosAngeles-based Lowe Enterprises, on behalf of aninvestment client, has purchased the 28-storyAffinia.

Ken Cruse, president and CEO of Sunstone, saidin the company’s first quarter report that lodging demand trendscontinue to improve and fundamentals are very positive. Heannounced that the company has purchased the Wyndham, at 633 N. St.Clair, with cash and by issuing $58.4 million in common sharesdirectly to the Blackstone Group, the seller, at$10.71 per share.

Cruse said his firm will invest another $15.8 million tocomplete a renovation and repositioning program for the newHyatt Chicago Magnificent Mile. “We remain focusedin improving our portfolio quality and scale while graduallydeleveraging our balance sheet through creatively sourced,attractively valued transactions,” he said in a statement. Sunstoneowns 32 major-brand hotels throughout the country.