The Talbott Hotel on the Gold Coast has a new owner.
Toronto-based FullG Capital bought the 16-story, 178-room property for almost $ 55 million, Crain’s Chicago Business reported.
In October 2015, a joint venture led by Sterling Bay, Geolo Capital and Wanxiang America Real Estate Group purchased the hotel, located at 20 E. Delaware Place, for $ 51 million. The deal also included famous investors, such as John Cusack and Chris Chelios. JLL, who brokered the deal, said the group had invested more than $ 16 million in renovations to all rooms, lobby, restaurants and fitness center.
After investing over $ 67 million in the property, the company refinanced the property in 2019 with a loan of $ 45.9 million. The latest sale means Sterling Bay will suffer a net loss on the property.
Despite the pandemic’s effect on hotel occupancy, FullG Capital decided to buy the property after the city saw an increase in tourism this summer.
Revenue per available room at downtown hotels that opened in August averaged $ 105.22, a jump from the same month a year earlier, when the average was $ 30. The current average is still well below that of August 2019, which was $ 175 according to data from STR.
Other companies are betting on the future of Chicago’s hospitality industry. Oxford Capital Group paid more than $ 72 million for the 247-room Thompson Chicago hotel on Bellevue Place.
“This is a testament to the optimistic outlook for Chicago’s recovery and the fact that while things aren’t going well right now, even buyers believe Chicago will be back in full,” firm appraiser Stacey Nadolny told Crain’s. of HVS hotel consultancy.
The Talbott changed hands several times even before the pandemic. The hotel was managed by Two Roads Hospitality, but later changed the management company to a Pivot brand property under the management of Atlanta-based Davidson Hospitality.
[Crain’s] – Victoria Pruitt