Prime Group adding 234-key canopy hotel atop Loop Marriott

CEO Michael Reschke plans to convert the top 5 floors of the building from offices to a 5-star hotel

Chicago /
Jun.June 28, 2018 11:30 AM

Prime Group CEO Michael Reschke and 208 S Lasalle Street (Credit: The Prime Group, Inc. and Google Maps)

UPDATE, July 2, 10 a.m.: The Prime Group is embarking on a $93 million effort to convert the top five floors of a downtown hotel building from office space into a separate boutique canopy hotel.

“The Reserve” is set to open late next year as a 234-key luxury inn with a penthouse and 3,500-square-foot ballroom on floors 18-22 at 208 South LaSalle Street as part of Marriott’s Autograph Collection, Crain’s reported Wednesday.

It would sit atop the JW Marriott Hotel, which already occupies the first 12 stories of the former Continental Bank building. Under Reschke’s plan, floors 13 through 17 will remain offices.

Prime Group CEO Michael Reschke told Crain’s he thinks there’s a “huge market” for a “small, five-star hotel” in the Loop, even in the midst of a recent explosion in new hotel capacity.

About 6,000 hotel rooms came online in Downtown Chicago between 2014 and 2017, and 2,700 more are planned by the end of 2019, according to city tourism officials.

The city’s largest cluster of luxury hotels remains in River North, where Denihan Hospitality sold the 297-key James Hotel for $83 million earlier this month, taking a $54 million loss on the property.

Nearby, investor Hotel Capital recently bought the 122-room Tremont Chicago Hotel for $26 million, and Bixby Bridge Capital refinanced its Kinzie Hotel with a $30.5 million loan. [Crain’s] — Alex Nitkin

This story has been updated to clarify Prime Group and Reschke’s role in the building.

 

Related Articles

arrow_forward_ios
Shapack Partners CEO Jeff Shapack, the Bridgford Foods plant at 170 N. Green Street, and Clayco Bob Clark (Google Maps, Clayco) 
Fulton Market project features 40-story commercial building
Fulton Market project features 40-story commercial building
Julie Thick, central region market manager, JPMorgan (JPMorgan, iStock/Illustration by Steven Dilakian for The Real Deal)
JPMorgan’s Julie Thick sees strong demand for Class A offices in Fulton Market, suburban warehouses
JPMorgan’s Julie Thick sees strong demand for Class A offices in Fulton Market, suburban warehouses
Fritz Kaegi, Cook County assessor (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
Cook County assessor Kaegi’s office collects $15M of ineligible tax exemptions
Cook County assessor Kaegi’s office collects $15M of ineligible tax exemptions
Kiser Group's Noah Birk and Aaron Skar with 7800, 7806 and 7822 South Laflin in the South Side neighborhood (Kiser Group)
Chicago multifamily properties attracting out-of-state buyers: Kiser Group’s Birk, Sklar
Chicago multifamily properties attracting out-of-state buyers: Kiser Group’s Birk, Sklar
Merchandise MART and Vornado VP Glen Weiss (Loopnet, LinkedIn)
Chicago’s Merchandise Mart getting another renovation
Chicago’s Merchandise Mart getting another renovation
Henry Kravis, co-founder and co-executive chairman, KKR (KKR); and Logistics Property In Suburban Chicago area (Crow Holdings)
KKR fund buys 923K sf three-building logistics property in suburban Chicago as part of $264M deal
KKR fund buys 923K sf three-building logistics property in suburban Chicago as part of $264M deal
A rendering of "43 Green," the planned development on the corner of Calumet Avenue and 43rd Street (Chicago Department of Planning & Development)
Mixed-use development set to bring housing, retail to Bronzeville
Mixed-use development set to bring housing, retail to Bronzeville
These were Chicago’s top real estate stories of 2021
These were Chicago’s top real estate stories of 2021
These were Chicago’s top real estate stories of 2021
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...