"Given the current economic environment and liquidity of banks, this is one of the steps we're taking to provide cash," Weger tells GlobeSt.com of the change in plans. "Putting out $100 million next year didn't look like the best option."

The conversion is the product of a joint venture between LaSalle Hotel Properties, based in Bethesda, MD, and Oxford OG Hospitality Chicago, based here. The companies acquired 12 floors in March for $46 million. Floors two through 13 of the building represent a total of 375,000 sf and were purchased from Prime Group Realty Trust, based here, which will continue to own the rest of the 52-story building. The joint venture is going by the name of Modern Magic Hotel LLC, in which LaSalle Hotel Properties has a 95% controlling interest, with the remaining 5% owned by Oxford.

The hotel is expected to have up to 335 rooms. Standard guestrooms were planned to be approximately 525 sf with 9.5-foot ceilings and floor-to-ceiling windows. About 20% of the rooms will be suites which will range in size from 775 sf up to 2,350 sf, according to a release from LaSalle. The hotel rate is expected to be in excess of $500 per night, based on luxury rates for last year, the company has said. The hotel will also offer approximately 17,000 sf for meetings and events, including a 5,000-sf ballroom. Additionally, it will have a 9,000-sf restaurant, a lobby bar, wine room, fitness center, indoor pool and spa.