Gold Coast hotel changes hands reflecting hotel industry’s pandemic recovery

Toronto-based FullG Capital purchased the 16-story, 178-room property for about $55 million

Chicago /
Oct.October 07, 2021 02:10 PM
FullG Capital CEO Drew Coles and The Talbott Hotel (FullG, Facebook via The Talbott Hotel)

FullG Capital CEO Drew Coles and The Talbott Hotel (FullG, Facebook via The Talbott Hotel)

The Talbott Hotel in the Gold Coast has a new owner.

Toronto-based FullG Capital purchased the 16-story, 178-room property for something close to $55 million, Crain’s Chicago Business reported.

Back in October 2015 a joint venture led by Sterling Bay, Geolo Capital and Wanxiang America Real Estate Group bought the hotel, located at 20 E. Delaware Place, for $51 million. The deal included some big-name celebrity investors as well, such as John Cusack and Chris Chelios. JLL, which brokered the deal, said the group put more than $16 million into renovating all of the guest rooms, lobby, restaurants and fitness center.

After investing more than $67 million in the property, the venture refinanced the property in 2019 with a $45.9 million loan. The latest sale means Sterling Bay will take a net loss on the property.

Despite the pandemic’s effect on hotel occupancy, FullG Capital decided to buy the property after the city experienced an increase in tourism this summer.

Revenue per available room in downtown hotels open in August averaged to $105.22, showing a jump from the same month a year earlier when the average was $30. The current average is still well below that of August 2019, which was $175 according to STR data.

Other firms are betting on the future of Chicago’s hotel industry. Oxford Capital Group paid more than $72 million for the 247-room Thompson Chicago hotel on Bellevue Place.

“It definitely speaks to the optimistic view on Chicago’s recovery and the fact that, even though things aren’t great right now, even buyers believe that Chicago will return in full,” appraiser Stacey Nadolny of hotel consultancy HVS told Crain’s.

The Talbott has changed hands multiple times even before the pandemic. The hotel was managed by Two Roads Hospitality but then switched management companies to become a Pivot-branded property under Atlanta-based Davidson Hospitality.

[Crain’s] — Victoria Pruitt





    Related Articles

    arrow_forward_ios
    The Archer Daniels Midland mill and a rendering of the apartment that will take it's place (WikiMedia / Tdl1060, Sterling Bay)
    Apartment towers planned for Fulton Market site of 19th-century flour mill
    Apartment towers planned for Fulton Market site of 19th-century flour mill
    (Photo-illustration by Steven Dilakian)
    White-hot luxury: Why Chicago’s high-end condo market is booming
    White-hot luxury: Why Chicago’s high-end condo market is booming
    NY real estate investment firm sells Oak Street property for $120M
    NY real estate investment firm sells Oak Street property for $120M
    NY real estate investment firm sells Oak Street property for $120M
    DRW founder and CEO Don Wilson with the historic property (Restoration Hardware, DRW)
    Gold Coast Three Arts Club building sells to Brookfield Asset Management-backed fund
    Gold Coast Three Arts Club building sells to Brookfield Asset Management-backed fund
    1932 N. Burling St. (One Sotheby's)
    Chicago’s Top 10 priciest home listings
    Chicago’s Top 10 priciest home listings
    US Xpress, Andy Farbman think small for post-pandemic Chicago offices
    US Xpress, Andy Farbman think small for post-pandemic Chicago offices
    US Xpress, Andy Farbman think small for post-pandemic Chicago offices
    The towers at 333 East Ontario Street (Arrive Streeterville)
    At Chicago’s McClurg Court, the tax man is at odds with market pricing
    At Chicago’s McClurg Court, the tax man is at odds with market pricing
    Sterling Bay is unloading Fulton Market’s Hyatt House Chicago
    Sterling Bay is unloading Fulton Market’s Hyatt House Chicago
    Sterling Bay is unloading Fulton Market’s Hyatt House Chicago
    arrow_forward_ios

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

    Loading...