For the second time in a month, Park Hotels & Resorts is putting a prominent Chicago property on the market for sale.
The real estate investment trust has hired JLL brokers to seek a sale of the former W Chicago City Center hotel at 172 W. Adams St., according to a brochure.
The 403-room hotel early this year was rebranded as the Midland Hotel Chicago, with plans for renovations as the hotel becomes part of Marriott International’s Tribute Portfolio.
Just months into the rebrand, Park Hotels & Resorts now wants to sell the 22-story hotel in the Loop business district.
That move comes a month after the Tysons, Virginia-based REIT hired the same JLL brokers to find a buyer for the 520-room former W hotel at 644 N. Lake Shore Drive, now known as the Wade.
Both Chicago hotels that Park is looking to sell were acquired as part of its buyout of Chesapeake Lodging Trust in 2019.
Park also owns the 1,544-room Hilton Chicago at 720 S. Michigan Ave.
The two Chicago offerings with a combined 923 rooms are hitting the market months after Park executives unveiled plans to raise between $350 million and $400 million by selling what they described as non-core properties, with plans to invest up to $330 million renovating its existing portfolio.
Other hotel REITs also are selling or looking to sell properties.
Park Chairman and CEO Thomas Baltimore Jr. in May reiterated his firm’s disposition plans despite an uncertain transactions market because of worries of a U.S. trade war, geopolitical tensions and other hurdles.
One recent Chicago deal demonstrates capital markets challenges, with Virgin Hotels’ original hotel selling for more than $77 million to a Michigan-based firm known for converting hotels into timeshare investments. The sale came at an apparent loss to Virgin Hotels and its partner on the project, Lionstone Development, while leaving the hotel at 203 N. Wabash Ave. with an uncertain future.
It’s unclear how much Park is expecting to raise from the Chicago sales. The company declined to comment to CoStar News.
The REIT already has completed one high-profile disposition in recent month, selling the 316-unit Hyatt Centric Fisherman’s Wharf in San Francisco. New York-based EOS Investors paid $80 million.
Park’s plans to sell the Midland building, which was completed in 1929, previously were reported by Crain’s Chicago Business, citing the JLL marketing materials.
JLL highlights the major slowdown in hotel development in the city and an 11.4% increase in revenue per available room, or RevPAR, over the past year through May.
The brochure also points to potential revenue upside after the new owner completes a modernization of rooms and amenities.
For the record
The seller is represented by JLL brokers Adam McGaughy, John Nugent, Mark Jindra and Nick Sullivan.