"This is a straight down the fairway value-add investment deal," John DePaul, managing principal and CEO of NHH tells GlobeSt.com. "We're buying two hotels in good locations that are in need of renovation and new management to improve their profitability and position in the marketplace."

[IMGCAP(2)]While the price paid for the hotels wasn't disclosed, DePaul says "we are privately held and do not wish to disclose that information. Let's just say it was significantly below the placement costs inclusive of all transaction costs including closing costs and renovations." With the economy down and the dollar's value shrinking, the joint venture had a plan to invest in the struggling market.

[IMGCAP(3)]"With our existing portfolio of hotels, we're seeing--as others are seeing in the industry – a downturn in revenue that we expect that to continue to the middle of '09," says DePaul. "As revenues decline and profitability decline, valuations also decline. We see that as an opportunity to buy back into a cyclical market."