Timeshare Bet Turns Chicago Virgin Hotel to Sports Illustrated

Speculation arose about the next chapter for Richard Branson’s Virgin Hotel Chicago after its purchase earlier this summer by a firm known for timeshare conversions. Now we know the downtown property will be converted into a Sports Illustrated–branded resort under a plan from Travel + Leisure, which is betting that timeshares can work in the Loop.

The Orlando-based vacation ownership giant said this week it will launch a 250-unit Sports Illustrated Resorts location in Chicago late next year, joining forthcoming sites in Nashville and Tuscaloosa, Crain’s reported. The company didn’t name the property, but people familiar with the deal told the outlet it will take over the 26-story Virgin Hotel at 203 North Wabash Avenue.

The world’s first Virgin Hotel sold in June for $77.4 million to Michigan-based Accelerated Assets, a firm that specializes in converting hotels and apartments into timeshares. That’s $309,600 per key. The seller was a joint venture between Miami’s Lionstone Development and Virgin Hotels, which spent over $117 million — or $468,000 per key — to redevelop the landmark Old Dearborn Bank Building a decade ago. In 2020, Branson’s Virgin Hotels Group and Lionstone Development landed a $37 million refinance on the hotel through Prime Finance, retiring an HSBC loan.

Travel + Leisure said the project will involve converting an existing hotel and offering “flexible, points-based ownership options,” with sales to begin early next year. Construction is expected to wrap in late 2026, though the hotel will remain open during the renovations.

The property represents a rare foray into urban timeshares. Those models are typically concentrated in resort destinations, though a handful operate in markets like New York City. The Chicago version will feature a redesigned lobby with sports-inspired décor, a street-level coffee shop, a restaurant and a sports bar, according to Travel + Leisure.

The plan ties together several players in the evolving hospitality niche. Sports Illustrated Resorts, launched in 2023 through a partnership with Sports Hospitality Ventures, licenses its brand from Authentic Brands Group, which owns the magazine’s intellectual property. Accelerated Assets has a history in Chicago, teaming with Bluegreen Vacations to convert the Hotel Blake at 500 South Dearborn Street into timeshares in 2013.

The Virgin deal was on the higher end of where Chicago hotels trade. Accelerated’s buy was among the priciest per-room sales since before the pandemic, possibly signaling the property would not continue as a traditional hotel. The 1928 building sits steps from Michigan Avenue and the Riverwalk. It was designed by Rapp & Rapp in 1928 and landmarked in 2003.

The building’s tax status offers another wrinkle: it’s under a Class L landmark incentive, meaning it received discounted assessments for refurbishing a city landmark and will graduate back up to the standard 25 percent of value through 2027.

— Eric Weilbacher