Meanwhile, LaSalle Hotels Properties' seven-figure investment in the Chicago Marriott Downtown six years ago yielded an astounding 47% internal rate of return, reports chief financial officer Hans S. Weger, as the company walked away with a $38.4-million gain after the $306-million sale to DiamondRock Hospitality Co. The Carlye Group and LaSalle Hotel Properties paid $175 million for the hotel at 540 N. Michigan Ave. in 2000.

Company officials believe both of their Downtown holdings have upside potential, and guest rooms at both properties will be part of a $80-million renovation program over the entire portfolio. While renovations made by former owner JER Partners have helped Westin Michigan Avenue move up in stature, there is more work to be done at the 367-room House of Blues, suggests president and chief executive officer Jon Bortz.

"We think the property will benefit from a new positioning," Bortz says during his company's earnings conference call. Plans could include a ballroom in addition to leasing out the remaining 22,000 sf of Marina City retail space that was part of the deal. Besides a prime River North location less than a quarter-mile from the Trump International Hotel & Tower, the House of Blues hotel could benefit from more cross-marketing with the popular namesake jazz venue at 325 N. Dearborn St., Bortz says.