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Commercial
Chicago

Kimpton Hotel Palomar sells for $55M amid dip in Downtown occupancy

Service Properties Trust paid about $211K a key

Cavalier and Henrosa hotels with Susan Gale of One Sotheby’s International Realty
Kimpton Palomar Chicago Hotel and John G. Murray President and CEO of Service Properties Trust (Credit: Google Maps)

Service Properties Trust has acquired the 261-key Kimpton Hotel Palomar, a deal that comes amid a dip in Downtown occupancy.

The Massachusetts-based real estate investment trust paid $55 million for the tower at 505 N. State Street, according to ConnectMedia.

The John Buck Company and Teachers Retirement System of Illinois developed the building in 2010. It is one of over 60 Kimpton-branded hotels worldwide, including Miami Beach.

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The upper floors of the 36-story building consist of apartments.

While there was a boom in demand for hotel rooms in 2018, occupancy has dipped this year. By mid-year, occupancy was at 88 percent, down from 90 percent at the same time last year.

Meanwhile, the Near North Side is experiencing a hospitality development boom. [Connect] — Kelsey Neubauer