loader image

Blackstone is the latest investor in Chicago’s hot hotel market

Jonathan Gray and the Courtyard by Marriott Downtown/River North

Jonathan Gray and the Courtyard by Marriott Downtown/River North

The Blackstone Group is getting in on Chicago’s hot hotel market, with the purchase of a 337-room River North Marriott.

The New York-based private equity giant paid $40.9 million for the Courtyard by Marriott Downtown/River North, at 30 East Hubbard Street, Cook County property records show. The hotel also has 5,000 square feet of conference space.

Maryland-based Host Hotels & Resorts was the seller. It is seeking to offload a number of other Chicago-area Mariotts. This spring, it listed the 256-key Marriott Suites O’Hare and the 254-key Chicago Marriott Suites Downers Grove. The hotels were put on the market as part of a portfolio sale that included four other properties in Arizona, California and Georgia. The Chicago-area hotels do not appear to have been sold.

Blackstone is investing in a strong Downtown hotel market. Record tourism helped the hotel industry increase revenue in 2018 by 10 percent, to about $2.7 billion. Despite 3,000 new deliveries last year, average daily room rate jumped by 5 percent, to $210.54.

The strong performance of Downtown hotels has lured plenty of investors. In May, Spanish billionaire Amancio Ortega spent $72.5 million for the 216-key Dana Hotel and Spa in River North.

Representatives for both Blackstone and Host Hotels did not immediately return a request for comment.

Last year, Blackstone sold its majority stake in the Hilton hotel chain for $1.3 billion, ending an 11-year ownership that netted Blackstone $14 billion in profit. In 2012, the firm paid $1.9 billion for the Motel 6 chain.

Blackstone is also looking to offload its Oakbrook Terrace office complex, seeking $50 million for the 320,000-square-foot property.

Recommend0 recommendationsPublished in Real Estate

Share this story with your network.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print


Recent Stories

Del Marie: locked down, but not out

The rapper-dancer-performance poet rolls with the pandemic punches. 2020 started off so well. January and February were great months for 27-year-old rapper, dancer, and performance

Read More »

Speak with a local expert now.

Learn more about this recent happening by speaking with an agent.