Arbor Lodging Partners bought a dual-branded hotel in Streeterville, one of three deals that saw the entire 40-story building change hands.
The Chicago-based firm picked up the property for $36 million, according to Crain’s. The 352-key Hampton Inn/Homewood Suites Mag Mile is located at 160 East Huron Street.
The seller, Florida-based Driftwood Hospitality Management, bought the tower that houses the hotels for $90 million in 2007, according to Cook County property records.
In addition to selling the hotel, Driftwood sold 93,000 square feet of medical offices in the building to MBRE Healthcare and the property’s 225-space parking garage to Park Ridge-based Metro Park. Terms of those deals were not released.
Arbor plans to spend $7 million renovating rooms and common areas at the 225-room Hampton Inn and 127-room Homewood Suites.
Arbor has 20 hotels in its portfolio. It bought the Marriott Schaumburg earlier this year.
The Huron Street inn is a couple of blocks from where Hilton Grand Vacations is buying the top six floors of the DoubleTree Chicago Magnificent Mile and will turn the units into timeshares.
The Chicago region’s hotel occupancy rate nudged up to 68.9 percent during the 12-month period ending in June, according to Marcus & Millichap’s regional hospitality research report. The uptick reverses a two-year slide in hotel occupancy, following 70 percent occupancy between June 2014 and June 2015. [Crain’s] — John O’Brien