A factor in the deal is the hotel's $22-million renovation, which will be complete in the spring. Among other things, the lobby is being redesigned, along with the hotel's 35,000 sf of banquet space and meeting rooms, and its fitness facility. "It's our intention to continue to commit capital resources to the hotel, with the aim of improving the overall guest experience," notes Cia Buckley, senior managing director of North American investments at JER Partners.
JER Partners has been active in the Chicago market recently, most notably in acquiring parcels in the Streeterville neighborhood--an upscale district near North Michigan Avenue--for multifamily development. The firm has hired LR Development to develop those parcels.
"The hotel market has been flat to down in Chicago in recent years, but JER believes it's posed for strong growth in the years ahead," a source familiar with the transaction told GlobeSt.com. "In its previous condition, this property might not have been able to take advantage of any upswing, but the money invested in the renovation ought to reposition it."
The source adds that some five to six hotel properties are expected to come on the market in Chicago in the near future, and that "JER is looking at all of them, because [they] like the Chicago market."
JER Partners is the private equity investment arm of the JE RobertCos., and has launched five private equity funds since 1997 with over $2 billion in committed capital. The Westin flag, owned by Starwood, is over 121 hotels and resorts in 31 countries and territories.
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