X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Strategic Hotel Capital, Inc. is paying $154.7 million, or $224,000 per room, for the Fairmont Chicago. The local buyer, which acquired an 85% stake in 807-room InterContinental Chicago at 505 N. Michigan Ave. earlier this year, hopes to close on the deal with San Francisco-based Swig Co. by the end of September.

The projected earnings before interest, taxes, depreciation and amortization of $13.5 million to $14.5 million in 2006. Fairmont Hotels Inc. will stay on as manager of the 38-story property at 200 N. Columbus Dr., according to Strategic Hotel Capital. “We look forward to capitalizing on the strengthening Chicago market given strong convention bookings for 2006, and the property’s proximity to Millennium Park,” says Strategic Hotel Capital chief executive officer Laurence Geller.

In addition to 62,000 sf of meeting space and the Aria Restaurant, the hotel overlooks the 24-acre Millennium Park as well as Lakeshore East, a $2.5-billion mixed-use community under development. Room rates at the Fairmont Chicago range from $249 to $289 per night.

Built in 1985, the hotel most recently changed hands in 1996, selling for $92.7 million. Fairmont Chicago is Swig Co.’s only holding here, in a portfolio devoted primarily to office assets, with a high concentration in California.

Strategic Hotel Capital is selling its 398-room Marriott Schaumburg, along with a 333-key Embassy Suites in Lake Buena Vista, FL.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.