The 10-story hotel, at 10 S. Wabash St., is a National Historic Landmark in the financial and theater district. "The Chicago market has some good growth prospects for the foreseeable future," says Sean Dell'Orto, vice president and treasurer of Highland Hospitality. "We think this hotel is well positioned and has some good opportunities that we can take advantage of to let us outperform the market." With the purchase of the Silversmith Hotel, the REIT owns 27 hotel properties with a total of 8,382 rooms in 14 states and the District of Columbia.

The hotel will break from the Crowne Plaza chain and be managed as an independent hotel called the Silversmith Hotel. "Repositioning that property as an independent, we feel that it gives us leeway to be a little bit more on the creative side as far as services and what we are bringing to that area," he says. Crestline Hotels & Resorts also recently was chosen to manage the Hilton Garden Inn in Chicago, says Ron Loman, regional sales and marketing director for Crestline Hotels & Resorts. Additionally, with the location in the financial and theater district near Michigan Avenue and Millennium Park, the hotel does not need to be attached to a chain to be successful, and being managed as an independent hotel will save them franchise fees, Dell'Orto says.

The Silversmith has 143 rooms including 63 suites. The rooms "are all very unique," Loman says. "They have such a great residential feel to them which really enhances the property," he says. Highland Hospitality plans to spend $2.5 million on renovations to the hotel. There will be some minor upgrades to the guestrooms but the majority of the funds will be spent on the addition of meeting space. "We are going to do some little things here and there, nothing extensive. The rooms are in pretty good shape," Dell'Orto says. The hotel currently has about 2,500 sf of meeting space, and about 3,000 sf of current vacant space will be converted for more, "taking advantage of the opportunity to attract more group business."