Chicago Approves LGBTQ+ Hotel in Northalsted

A boutique hotel project geared toward LGBTQ+ travelers is moving forward in Lakeview after receiving Chicago City Council approval, clearing the way for construction to begin.

The proposed hotel at 3257 North Halsted Street will have six-stories and 51 rooms, Block Club reported.

It would replace the former Yoshi’s Cafe, a neighborhood staple that closed in 2021 after 39 years in business.

The project is led by local developer Allan O’Brien, owner of the Men’s Room Chicago at 3343 North Halsted Street, which sells clothing and accessories for the gay community. His partners in the deal are Andrias Campbell and Bob Sievers.

The development will feature a restaurant on its ground floor, a rooftop bar with a pool and cabanas and a speakeasy-style lounge in the basement. The lobby, restaurant, speakeasy and rooftop lounge will be open to the public when not reserved for private events.

The rainbow-themed building was designed by Chicago-based Jonathan Splitt Architects.

O’Brien’s team secured the approval with strong community support, having worked with Alderman Bennett Lawson and neighborhood groups. No timeline for construction has been announced.

The developer’s “good-neighbor agreement” with the city includes 24-hour on-site staff and security, hosting community events with discounted offerings for neighbors and reinstating a three-car standing zone on Aldine Avenue for guest drop-offs and pickups.

To ease congestion, the developers are also working with city officials to establish a second standing zone on Halsted Street for ride-share and taxi access.

Chicago’s hotel development pipeline has fallen to the lowest level in recent years as construction lending froze up, with fewer than 1,500 rooms under construction in the fourth quarter, CoStar reported

— Judah Duke