The deal with InterContinental Hotels, which will retain a 15% share in both properties, places the value of the 1,448 rooms at $303.5 million or $209,600 per key. The deal structure calls for Strategic Hotel Capital to receive an 8% return on its investment first. After InterContinental Hotels takes an 8% return, the partners would share any remaining profits 85-15. The deal is expected to close in April.

The two towers--one is 42 stories while the other is 26 floors--on Chicago's Magnificent Mile have been renovated and includes 42,000 sf of meeting space, including six ballrooms and 30 meeting rooms. The 34-story InterContinental Miami overlooking Biscayne Bay includes 65,000 sf of meeting space. "Both properties provide our asset management team with avenues to add substantial value to well-located urban hotels in growing markets with multiple demand generators," says Strategic Hotel Capital chief executive officer Laurence Geller.

The properties are expected to generate annual earnings before interest, taxes, depreciation and amortization of more than $25 million, according to Strategic Hotel Capital.