"Now is a great time to invest in hotels; the recovery is already here," Raymond Martz, LaSalle vice president of finance and investor relations, tells GlobeSt.com. "There wasn't a lot of supply before the recession and there is not a lot in the pipeline. The table is set for the lodging industry to have a number of years of good performance. It's like the perfect storm."

Martz's take on the status of the industry appears to be right on target. "Observers and investors alike are realizing that the market has turned a corner," researchers conclude in Marcus & Millichap's Spring 2004 Hospitality Research Report. "This has generated significant demand for the limited supply of available investment properties."

Martz adds that in addition to the economic climate being ripe for such an investment, the hotel itself is a solid asset on its own. "It's a great property," he adds. "It has generated stable cash returns despite the downturn in the economy, and 9/11." And the location, adds even more to the value. "The hotel is only three blocks from the new 2.4-million-sf US Patent & Trademark Office, so that will be a huge demand driver." For LaSalle the acquisition brings its total take of hotel properties in the metro Washington, DC area up to seven, and there is more to come. "We have a very healthy balance sheet, and we have the capacity for more acquisition. We're always looking around." LNR officials were unavailable for comment at press time.