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Fairmont Going to Strategic Hotel Capital for $155M

CHICAGO-The local buyer is paying $224,000 per room for the 38-story property at 200 N. Columbus Dr., its second Downtown acquisition this year. The property is San Francisco-based Swig Co.'s only local holding.

By Mark Ruda | Updated on July 15, 2005

CHICAGO-Strategic Hotel Capital, Inc. is paying $154.7 million, or $224,000 per room, for the Fairmont Chicago. The local buyer, which acquired an 85% stake in 807-room InterContinental Chicago at 505 N. Michigan Ave. earlier this year, hopes to close on the deal with San Francisco-based Swig Co. by the end of September.

The projected earnings before interest, taxes, depreciation and amortization of $13.5 million to $14.5 million in 2006. Fairmont Hotels Inc. will stay on as manager of the 38-story property at 200 N. Columbus Dr., according to Strategic Hotel Capital. “We look forward to capitalizing on the strengthening Chicago market given strong convention bookings for 2006, and the property’s proximity to Millennium Park,” says Strategic Hotel Capital chief executive officer Laurence Geller.

In addition to 62,000 sf of meeting space and the Aria Restaurant, the hotel overlooks the 24-acre Millennium Park as well as Lakeshore East, a $2.5-billion mixed-use community under development. Room rates at the Fairmont Chicago range from $249 to $289 per night.

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