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Two South Loop hotels get refinanced for $147M amid strong market

Together, the Best Western Grant Park Hotel and Homewood Suites by Hilton Chicago total 405 rooms

Homewood Suites by Hilton Chicago at 1101 South Wabash Avenue, Best Western Grant Park Hotel at 1100 South Michigan Avenue and Warren de Haan, head of originations at Acore Capital
Homewood Suites by Hilton Chicago at 1101 South Wabash Avenue, Best Western Grant Park Hotel at 1100 South Michigan Avenue and Warren de Haan, head of originations at Acore Capital

The Chicago hotel market has remained strong, and now one local investor has scored a refinance on two properties in the South Loop.

SB Yen Management Group secured a $147 million loan on the 172-key Best Western Grant Park Hotel at 1100 South Michigan Avenue, and the 233-key Homewood Suites by Hilton Chicago at 1101 South Wabash Avenue, records show.

Acore Capital Management provided the debt on the hotels.

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In 2018, Hinsdale-based SB Yen secured a $90 million construction loan from Access Point Financial to start building the Homewood Suites by Hilton Chicago. The company did not return a request for comment.

Overall, hotels have performed well this year in the city, especially in Downtown. That has lured investors, including Blackstone Group in July, which paid $40 million for the 337-room River North Marriott.

The South Loop is in the midst of a development boom that includes high-profile projects like the 76-story, 792-unit One Grant Park; Essex on the Park, a 56-story, 479-unit rental tower; and a 74-story, 323-unit condo tower known as 1000M at 1000 South Michigan Avenue.

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