Planned Hyatt hotel in Chicago's Loop scores $34M loan

The developer of a planned Hyatt Place hotel in Chicago's Loop has scored a reported $34-million construction loan for the 206-room project, according to Crain's Chicago.

A venture led by Spartanburg, S.C.-based OTO Development borrowed the money in February from Bank of America. Construction has begun on the site at 28 N. Franklin St.

Crain's writes that OTO is among several developers planning to add 6,200 hotel rooms downtown, many near the city's LaSalle Street financial district. The area has drawn recent interest from developers, encouraged by the 2010 opening of a 610-room JW Marriott hotel at LaSalle and Adams streets. Most recently, Chicago developer Michael Reschke began converting an office building at 11 S. LaSalle St. into a 380-room Residence Inn by Marriott, Crain's reports.

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

OTO was founded in 2004 by former Extended Stay America Inc. executives, and has opened 45 hotels.


Suggested Articles

Under the approved legislation, small businesses now will have 24 weeks (up from eight) to spend the funds loaned to them through the program.

A number of states offer immediate property tax relief related to disasters and calamities.

In the short term, borrowers should continue to focus on expense management as revenues increase.