One of Chicago’s largest and most historic hotels — the 1,639-room Palmer House Hilton — is seeking a new owner, local business journal
Crain’s Chicago Business reported this week.
The property’s current owner, New York-based Thor Equities LLC, reportedly has hired Jones Lang LaSalle Inc. to sell the property to an investor for as much as $500 million.
“Thor has picked a good time to sell, capitalizing on strong investor demand for hotels amid rising occupancies and room rates,” reports Crain’s Chicago Business contributor Alby Gallun. “Yet the hotel’s size and price will limit the pool of bidders, with deep-pocketed private-equity firms or overseas investors likely to show the most interest.”
Thor purchased the Palmer House nearly eight years ago for $230 million. According to Crain’s, the hotel was appraised for $436 million in July 2012. Built in 1873 by business titan Potter Palmer, it claims to be the nation’s oldest hotel in continual operation and is Chicago’s second largest hotel, behind only the 2,019-room Hyatt Regency Chicago.
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