Jones Lang LaSalle Hotels issues an "Institutional Investment Update." As of third quarter 2000, it described the Chicago hotel market as one that demonstrated above average growth. The city sees itself in the company of such cities as Boston, Los Angeles, San Francisco and Washington, D.C. With the year-end sale of the Westin River North, it does appear that investors do see Chicago as a profitable hotel investment play.

According to the Chicago Convention and Visitors Bureau, occupancy rate for downtown hotels hovers near 76%. An average hotel room rate is near $155. One new high-end hotel that opened in 2000 was the Park Hyatt on Chicago Avenue just west of Michigan Avenue.

There are several hotels currently being renovated in this competitive marketplace. They are: Hotel Inter-Continental, 505 N. Michigan Ave., with 500 to be completed by Dec. 2000-May 2001; the Days Inn Chicago/Lake Shore Drive at 644 N. Lake Shore Dr. with 556 rooms to be completed by Dec. 2000-July 2001; and the Midland Hotel, 172 W. Adams St., 390 rooms to be completed by Dec. 2000-July 2001.