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UPDATE: Marriott Acquisition Represents Ripe Market for Trade

CHICAGO-DiamondRock Hospitality Co.'s $295-million purchase of the Chicago Marriott Downtown marks another significant transaction in the Windy City's hospitality arena. According to one source, the timing of hotel asset trades couldn't be better.

By Dana Dubriwny | Updated on March 07, 2006

CHICAGO-The $295-million purchase of the Chicago Marriott Downtown by Bethesda, MD-based DiamondRock Hospitality Co. is another in a wave of recent hotel acquisitions in the Windy City. The purchase–from affiliates of the Carlyle Group in a deal financed through Jones Lang LaSalle Hotels–represents more than just an elaborate exchange of high-end rooms. According to some analysts, it indicates a significant trend in the marketplace.

Thomas Fisher, executive vice president with JLL Hotels, tells GlobeSt.com that both DiamondRock and Carlyle are taking advantage of the strong capital-markets environment. With corporate travel returning and the convention calendar heating up, Fisher says the market is seeing a new momentum in room occupancies.

“I’ve never seen so much investor interest,” Fisher says. “Over the past 15 months, we’ve been involved in $2 billion worth of transactions. That alone is a testament to institutional quality of market.”

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