CHICAGO—German investor Deka Immobilien, the real estate arm of DekaBank Group, has a contract to buy the Hyatt Centric hotel at 100 W. Monroe St. in Chicago's Loop for $110 million. The developer will continue to operate the 257-room hotel, which opened in 2015, under the Hyatt brand. Such sale-leaseback deals are relatively rare for US hotels, but experts say they may become more common in the near future, especially if overseas buyers continue flocking to the sector.

That seems highly probable, considering that core cities like Chicago, New York, Boston, Miami, and Los Angeles remain quite attractive for foreign investors, and thousands of new hotel rooms have sprouted in their downtowns.

“It's a win for both sides, and it makes a lot of sense, especially if you are a foreign investor,” Bob Goldman, a partner in global law firm DLA Piper's real estate practice, tells GlobeSt.com. These buyers typically prefer locking in a guaranteed return and allowing local professionals to continue managing a hotel. Such sale-leasebacks for hotels are more common overseas, especially in Europe. “They're comfortable with this deal structure,” and the developer in turn gets their capital back quickly.