Braemar's Sofitel Chicago in Gold Coast Hits Market

Braemar Hotels & Resorts placed the 415-room Sofitel Chicago up for sale, marking a significant test for the city’s luxury hospitality market.

The Gold Coast property at 20 East Chestnut Street is being marketed as investors weigh a recovering downtown sector. According to a marketing flyer and property records, Dallas-based Braemar engaged JLL to broker the deal for the 32-story triangular prism-shaped building. Braemar originally acquired the hotel for $153 million in 2014, but has not listed a formal asking price for the current offering. Crain’s first reported the listing.

The decision to sell coincides with a broader strategic shift for the luxury real estate investment trust. Braemar CEO Richard Stockton told the outlet that while the firm remains enthusiastic about the property’s prospects, the listing is part of an ongoing process to explore a sale of the entire company.

Market observers are closely watching the sale as a bellwether for institutional interest in Chicago’s commercial core. Recent transactions in the immediate vicinity, including the sales of the Westin Michigan Avenue and the Hampton Inn/Homewood Suites Mag Mile, have closed at significant discounts compared to previous valuations, according to the publication.

JLL brokers Adam McGaughy and John Nugent are highlighting a $12.8 million guest room renovation completed in 2018. They also stressed the potential for a new owner to increase revenue by updating the hotel’s existing event spaces.

The property maintains a brand agreement with Accor’s Sofitel brand through 2041. However, the hotel is unencumbered by management, providing a prospective buyer the flexibility to rebrand the building if desired.

Financial filings show the Sofitel generated about $6.2 million in earnings last year, representing an 8 percent increase over 2024. Despite this growth, revenue per available room saw a slight decrease to $182.76 from $184 the previous year, according to the outlet.

The property’s RevPAR remains above the Downtown Chicago average, which CoStar Group reported at $167.67 for 2025. While market-wide RevPAR surpassed 2019 levels, it still trails pre-pandemic averages when adjusted for inflation.

The sale will determine if the property can retain its 2014 valuation in a climate where downtown values have generally struggled to rebound to pre-pandemic heights. The hotel, completed in 2002, stands as one of the most architecturally distinct buildings in the Gold Coast submarket.

— Eric Weilbacher