Wednesday, November 24, 2010

Hotel on the Market

The hotel and hospitality industry has been suffering in the wake of the economic downfall the past two years. Even with the recessions crippling effects, business and leisure travel has been on an upturn, increasing significantly in recent months. Hotels are eager to fill their rooms and keep them booked consistently throughout the rest of the year and the holiday season. Despite increased hotel occupancies and room rates, the hotel investment market is still slow, making investors hesitant to put money into any property. But Starwood Hotels & Resorts Worldwide Inc. is crossing its fingers for a risk taker. According to Crain's Business, Starwood's loop property, W Chicago on Adams, is up for purchase, and they are hoping to get over $130 million dollars for the hotel.

Experts say it is a lofty goal, especially after the brand new JW Marriott Chicago opened its right across the street earlier this month. The 610-room hotel will certainly have an impact on what happens with the W, and some industry officials still think it's a worthy investment. Remember, Host Hotels & Resorts Inc. did purchase the Westin River North in August for $165 million, so there is still hope for the W. Although, it may not go for the initial asking price. Starwood may have to settle for less money, but it all depends on the group of investors they try to sell to.

It is promising, however, to know that quality properties like the W Chicago are being considered as worthwhile assets. It would be a real shame to see the hotel shut down entirely, another fallen victim in the hospitality industry's epic battle with the economy.

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