On behalf of The Blackstone Group, Jones Lang LaSalle’s (JLL) Hotels & Hospitality Group today announced the sale of Sofitel Chicago Water Tower Hotel. Ashford Hospitality Prime purchased the asset for $153 million or approximately $369,000 per key. The sale represents the largest single asset hotel transaction in Chicago since 2012 and comes on the heels of nearly $420 million in hotel dispositions in 2013. JLL also secured $80 million of acquisition financing on behalf of the property’s new owners.
Managing Director Adam McGaughy and Senior Vice President John Nugent led the JLL team on the transaction. Executive Vice Presidents Bill Grice and Keith Largay led the financing effort.
“The Sofitel Chicago has experienced tremendous top and bottom line growth over the past two years and will continue to be an exceptional performer within Ashford Prime’s portfolio,” said McGaughy. “This transaction is reflective of the strong interest from institutional groups seeking high-quality hotel investments in downtown Chicago.”
The 32-floor, 415-key hotel is located at 20 East Chestnut Street in Chicago’s affluent Gold Coast neighborhood. It is one block west of the Magnificent Mile and in close proximity to the city’s corporate, convention and leisure markets. Designed by award-winning French architect Jean-Paul Viguier, the prism-shaped building features floor to ceiling windows and offers views of Chicago’s skyline and Lake Michigan.
Jones Lang LaSalle’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US $36 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
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About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $4.0 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 3.0 billion square feet. Its investment management business, LaSalle Investment Management, has $47.6 billion of real estate assets under management. For further information, visit www.jll.com.