The sale comes just more than a thirty day period right after Sunstone offered off the Hyatt Centric Chicago Superb Mile in Streeterville, its only other Chicago hotel. The River North deal will make Sunstone the next serious estate financial investment have confidence in in modern months to income out of the Chicago hotel market completely and cite the city’s gradual restoration from the community wellness disaster. Orlando-based mostly Xenia Lodges & Resorts in January marketed the previous Kimpton Resort Monaco at 225 N. Wabash Ave. to a South Korean conglomerate and said it sees the downtown Chicago marketplace having difficulties to bounce back again from the pandemic.
The hard cash-outs illustrate the wrestle that publicly traded resort traders foresee in Chicago, the place the recovery of hotel efficiency has lagged that of other significant metropolitan areas. Chicago’s hefty reliance on small business vacation and readers tied to conventions and trade shows—both of which have still to arrive again in a meaningful way—has weighed down nearby hoteliers’ base lines.
Sunstone CEO Bryan Giglia, who took the role previously this month, mentioned in a assertion asserting the River North assets gross sales that the Chicago market “has been hindered by excessive supply and an incapability to travel meaningful level and profitability development.” Sunstone executives signaled that reduction of confidence in the marketplace previous thirty day period for the duration of a convention phone with analysts, adding that mounting neighborhood assets taxes were yet another issue.
Magna, in the meantime, is wagering on brighter days forward for downtown motels, primarily these it can decide up for somewhat very low prices. The River North acquisitions arrive just 8 months just after Magna purchased the 208-room St. Clair Resort Magnificent Mile at 162 E. Ontario St., a property whose earlier proprietor was staring down a deadline to spend off its loan.