- Matt Ward
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Westin River North Hotel Sale Proves Neighborhood’s Viability
A sign of Chicago’s River North neighborhood’s inherent commercial strength is the recent $165 million sale of the 424-room Westin River North Hotel at 320 North Dearborn Street. The purchase price was approximately $389,000 per room, an excellent price considering that the hotel market nationally has struggled. The price was 37 percent higher than Tishman Realty & Construction paid for the riverfront property 10 years ago.
According to Tishman, they “decided to take advantage of the pent-up (investor) demand for high-quality, performing hotel assets.” Since Tishman purchased the hotel, it has “posted strong returns and consistently outperformed its competitors.”
The purchaser is Host Hotels & Resorts, Inc., an East Coast-based real estate investment trust, which owns a six-property Chicago-area portfolio. Their Chicago hotel portfolio includes the Embassy Suites Hotel at 511 North Columbus Drive; the Swisshốtel at 323 East Wacker Drive; and the Courtyard at 30 East Hubbard Street.