Hotel Projects Proceed Despite Downturn

CHICAGO-Two projects–a planned construction and a renovation–are going forward Downtown in the face of a slumping hotel market. Meanwhile, another $47-million project has opened in East Chicago, IN.

Chief financial officer and treasurer Douglas Neis says Milwaukee-based Marcus Corp. remains in the early stages of developing its first urban Baymont Inn & Suites in a downtown area, having paid $13.4 million for lease rights in March to control the northwest corner of Ontario and Rush streets in the River North area. The company still plans on opening in 2003 after redeveloping a six-story, 191,000-sf building that formerly housed a car dealership and sporting goods store.

Meanwhile, not having an urban property may help the parent Marcus Corp.’s bottom line. “Baymont does not have a lot of urban and resort locations and its properties along interstate highways stand to benefit from the increase in over-the-road travel,” explains chairman Steven H. Marcus.