Virgin Hotels’ original spot in Chicago is set to be converted into a Sports Illustrated-themed resort near the Magnificent Mile after the historic, 25-story building recently sold for more than $77 million.
Travel + Leisure Co., the company behind the concept branded with the sports magazine’s name, on Tuesday announced plans to open an approximately 250-room resort in Chicago.
The statement did not specify where Sports Illustrated Resorts was going, but the destination was described as an existing, 250-room hotel along the Chicago River and just a block from Michigan Avenue.
Cook County property records show that property is the current Virgin Hotels Chicago at 203 N. Wabash Ave.
Billionaire Richard Branson’s Virgin Hotels and its development partner, Lionstone Development, sold the hotel at an apparent loss for just under $77.4 million in June. The hotel opened within the historic building along Wabash and Lake Street in 2015.
The buyer was an affiliate of Birmingham, Michigan-based Accelerated Assets, which specializes in converting properties into timeshare ownership structures.
At the time, Accelerated Assets did not say what it had planned for the Chicago landmark, and Virgin Hotels said it would continue to manage the hotel under the Virgin name for an undisclosed period.
A Travel + Leisure affiliate has an agreement to buy the hotel in phases from Accelerated Assets, according to online property records, starting with a payment of just over $12 million made on June 30. That deal, made on the same day that Virgin sold the property to Accelerated Assets, was for 24 of the property's 250 rooms.
Crain's Chicago Business previously reported that the Sports Illustrated concept was bound for the Virgin property, citing people familiar with the plan.
Orlando, Florida-based Travel + Leisure did not specifically say in the statement that the Chicago resort would be a timeshare, but in the statement said it “will offer flexible, points-based ownership options, with sales beginning in early next year.”
The hotel will continue operating as it is converted into the new brand, according to the statement, with the resort set to open in late 2026.
"Chicago is where legends are made," Travel + Leisure COO Geoff Richards said in the statement. "With more than 40 championship trophies across 11 professional and college teams, this city breathes sports in a way few places can match, with a passion that runs through generations of fans. With this new resort, we're creating a destination where that same championship spirit lives year-round, combining the rich storytelling tradition of Sports Illustrated with the unmatched energy that makes Chicago home to some of the world's most devoted fans."
Sports Illustrated Resorts launched with a resort in the Dominican Republic in 2022, and the concept now has plans to open in Tuscaloosa, Alabama, and Nashville, Tennessee.
Travel + Leisure said Chicago was chosen because of the city’s sports culture and its more than 55 million annual visitors.
Historic elements of the Chicago building will be preserved, including the grand staircase, while a sports theme is incorporated, according to the statement. The hotel will have a coffee shop, full-service restaurant and sports bar, the statement said.