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Hospitality REIT Snaps Up Kimpton Hotel in River North
Newly-rebranded REIT Service Properties Trust completed the purchase of the 261-room Kimpton Palomar Hotel in River North for $55 million, or approximately $211,000 per key. The hotel will be added to SVC’s existing agreement with Intercontinental Hotels Group, which also includes another Kimpton-branded property downtown.
“The Hotel Palomar is ideally located near Michigan Avenue in an economically vibrant urban community in downtown Chicago,” said John Murray, Service Properties Trust’s president and CEO. “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.”
The property occupies the lower floors of a 36-story tower at 505 N. State St. that was developed by the John Buck Company. A Buck venture sold the Palomar to a group including Kimpton Hotels & Restaurants in 2010, Crain’s Chicago Business reported.
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