Date: July 2017
Location: The Loop, Chicago, USA
Name: Hyatt Centric The Loop – four star
No. of Keys: 257
Seller: Murphy Development Group, based on a sale and leaseback deal – not well known in the USA, but highly developed in Europe and the Middle East. Hyatt remain as the franchisor. Murphy bought the 22-story building for $12.8 million in 2012 and in 2013 took out a
$45 million construction loan to redevelop the building. The hotel opened in 2015. The deal was brokered by HFF.
Buyer: Deka Immoblien, highly regarded German asset manager and property group – see other entries in “search” on our website.
DekaBank’s deal is similar to the record $315 million sale of the 452-room LondonHouse hotel at Michigan Avenue and Wacker Drive last year to another German investment manager. In that transaction, Hamburg-based Union Investment Real Estate paid a Chicago-record $697,000 per room. In turn, an affiliate of Chicago-based Oxford Capital Group agreed to pay rent and continue operating the hotel for 25 years.
Price per Key: $428,016
THPT Comment: No holding back Deka with this, one of their first hotel acquisitions in the USA.
First Seen: Chicago Tribune