Upgrade Your 'Staycation' at These Hotels

LOS ANGELES (TheStreet) -- The U.S. Air Transport Association predicts that 3.5% fewer people will fly during Labor Day weekend this year compared to 2008. Rather than leave seats empty, major carriers will likely pack flights in and offer fewer deals.

With the economy struggling to emerge from its doldrums, the argument for taking a "staycation" -- time off spent close to home -- has never been stronger. If you live in New York, Chicago or Los Angeles, there's no reason to hang out in your backyard or your fire escape when you can upgrade to a night out at one of these hip hotels.

TheWit in Chicago offers top-notch restaurants and a central location.

TheWit, Chicago: Before theWit opened in May, chocolate cookies were the best amenities that Hilton Hotels' Doubletree brand had to offer. TheWit is the company's first foray into the boutique hotel market and is designed to compete with the W Hotels of Starwood Hotels & Resorts Worldwide(HOT Quote).

The 27-story glass and steel tower on Chicago's historic State Street puts guests in close proximity to shops and theaters inside the Loop area. Start your mornings at theWit's hip gym and then hit the spa for an organic facial. Fine dining at Todd Stein' Italian restaurant, Cibo Matto, or Bradley Manchester's State and Lake, and a rooftop bar and lounge mean you don't have to leave the building for fun.

The hotel's airy rooms start at $170 a night and offer floor-to-ceiling views of the city's skyline.

Rosewood Crescent Hotel, Dallas: If you're from Dallas, you're probably familiar with this grand dame of hospitality. Only five minutes outside downtown, the Rosewood Crescent Hotel is the home of the only Midwest location of the Nobu high-end sushi chain.