Ace Hotel Chicago announces closure after building sells for $63M

Hotel chain announced it will leave the building, which was recently purchased by Onni Group

Ace Hotel Chicago Announces Closure After Building Sells For $63M (iStock)
Ace Hotel Chicago Announces Closure After Building Sells For $63M (iStock)

The Ace Hotel Chicago in the Fulton Market district will close its doors at the end of January.

The hotel chain announced on its Instagram that it will be leaving the building at 311 North Morgan Street on Jan. 26, the Chicago Eater reported.

“Since 2017, you’ve let us grow roots in your city of towering architecture, innovative culture, acclaimed art and unparalleled hometown pride. Now, we say thank you for everything you’ve given us,” the chain said on Instagram. “To all who slept over, shared a meal, danced dome-side, shed inhibitions on the 7th floor, caught a show, market or movie night on the Prairie, coffee talked in the Lobby or simply made yourselves at home — we’re leaving, but leaving with incredible memories made together.”

Vancouver-based Onni Group, which purchased the property for $63 million in December, has reportedly been interviewing some of Chicago’s well-renowned restaurant groups to take over the food and beverage space in the hotel. The group hasn’t made public its plans for the property.

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Chicago hotels have struggled during the pandemic. While summer tourism boosted the hotel industry and dulled the sting of 2020’s business losses, winter isn’t a popular travel season for Chicago, meaning the properties are really feeling the impacts now.

The Ace Hotel deal was one of the highest per-room totals paid for a hotel in downtown Chicago since the beginning of the pandemic, even though the $400,000 per room price tag is significantly lower than what Sterling Bay tried to sell the property for before the onset of the pandemic. The purchase price was just below the $64 million of debt Sterling Bay refinanced the property for in 2018.

The property’s new owner, Onni Group, is also working on a massive apartment complex called Halsted Pointe, which will consist of towers more than 50 stories high and have more than 2,600 residential units on Goose Island.

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[CE] — Victoria Pruitt

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