Hospitality N Illinois

Chicago's Kimpton Palomar Hotel sells for $55 million

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Service Properties Trust (SVC), a Massachusetts-based REIT, has completed the purchase of the 261-room Kimpton Palomar Hotel in Chicago for $55 million, or approximately $211,000 per key. The hotel will be added to SVC’s existing agreement with Intercontinental Hotels Group.

“The Hotel Palomar is ideally located near Michigan Avenue in an economically vibrant urban community in downtown Chicago,” said John Murray, the firm’s president and chief executive officer. “Built in 2010, we believe this is a quality acquisition in a major market at a price that is well below replacement cost and that will add long-term value to SVC’s portfolio.”

SVC owns a diverse portfolio of hotels and net lease service and necessity-based retail properties located in 45 states, Washington, DC, Puerto Rico and Canada.The properties are operated under long term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc.