There is a lot of action in the Chicago hotel market these days, which makes this particular sale…unusual.
Gaw Capital Partners bought the 285 room hotel – along with the famous Pump Room restaurant – for only $210,000 per room. Compare that to the record Waldorf Astoria sale at about $600,000 per room. What makes this more interesting is that the sale price appears to represent the previous owner, Ian Schrager, merely breaking even on the purchase and renovation costs.
This seems to represent a failure of Schrager’s ‘Public Hotel’ concept – Public Chicago was the only hotel to ever bear the Public name. The rumor is that the State Pkwy location – in the middle of the Gold Coast, and very much in the midst of a quiet residential neighborhood, may have driven the price down from the original ask of closer to $85 million.
Schrager, founder of Studio 54, is remaining silent on the deal, and there is no word from Gaw on any changes to the name.