While one high profile downtown Chicago hotel is currently being planned, another is now being listed for sale. According to reports from Crain’s, the 261-room Hotel Palomar at 505 N. State Street is now being listed on the open market at a time when hotel values in the Windy City seem to be at all-time highs.
Although a price has not yet been disclosed, the likely value of Hotel Palomar has almost certainly gone up since it first opened up back in 2010, likely netting its owners a fairly substantial profit.
One of four hotels run by Kimpton Hotels & Restaurants, the boutique Hotel Palomar occupies the lower floors of the 36-story tower at 505 N. State, which of course is a prime location in one of the city’s hottest and trendiest neighborhoods, River North.
But with so many rooms being added to Chicago’s hotel inventory and recent data showing the hotel industry is starting to lose momentum, the move to sell certainly comes with risk. Right now, investors are jumping at the chance to enter Chicago’s red hot hotel market, but how long that may last is anybody’s guess.
The motive to sell might also relate to another project Kimpton is working on in the Loop, which is a 293-room hotel at 122 W. Monroe that will transform an old vintage office building. With construction finally nearing completion, what’s being called the Kimpton Gray Hotel is expect to debut later this spring.