A Gold Coast hotel traded hands in a series of transactions that call into question whether the seller Interwest Capital Group recouped its investments on major renovations to the property.
A deed recorded last month shows the entity REIT 1244, led by investor Jake Kurian, took over the 165-room Claridge House hotel property at 1244 North Dearborn for $15.5 million. He does not appear to have taken out a mortgage to fund the transaction.
Another deed recorded on the same day shows Kurian transferring the property, formerly known as Hotel Indigo, to 1244 Hospitality LLC, which was recently established by an investor named Tom Thomas. That deed shows the hotel transferring from Kurian to Thomas for $19.5 million. Thomas supported this deal with a $17.5 million mortgage from Sterling Bank.
San Diego-based Interwest bought the Claridge House in 2016 for $24 million with an $18 million loan from Benefit Street Partners. The real estate investment firm then poured $9 million into a full renovation to the property in 2018, according to a commercial real estate listing for the property.
It’s unclear whether the hotel traded hands twice in one day, ultimately selling for $19.5 million, or if Kurian and Thomas partnered on a combined $35 million purchase.
Either way, it’s unlikely that Interwest recovered much, if any, of its investment, totaling at least $33 million, in the hotel.
Representatives of Interwest and brokers who have represented the property did not respond to requests for comment. Thomas and Kurian could not be reached.
The new owners appear to have installed a new property management company since the sale closed last month. St. Louis-based Genuine Hospitality was tapped to manage the hotel beginning this month and plans to rebrand the hotel into a Tapestry Collection by Hilton property, according to a May 12 press release.
The hospitality industry took a major hit during the pandemic, which broke out two years after Interwest began its renovation efforts. The sector, however, appears to be slowly recovering.
Revenue per available room grew 6 percent in Chicago in the first quarter of 2025 compared to the same quarter last year, data from JLL shows, though inflation has been cutting into revenues.
Also in the Gold Coast, a venture managed by Wheeling-based investor Marsha Forsythe this year acquired the 285-key Ambassador Hotel at 1301 North State Parkway. The purchase resolved a 2023 foreclosure lawsuit that accused the hotel’s previous owner — an affiliate of Chinese investment firm Gaw Capital — of defaulting on a $38.5 million loan when it matured last May.
Public records show the deal closed in March with the venture paying $24 million or about $84,000 per key for the hotel. The price represented a sharp drop from the $60 million Gaw Capital paid for it in 2016.
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