Chicago developer plans boutique hotel for 2015 construction

A Chicago developer is planning to put a new hotel, data center and retail outlet in the South Loop.

Originally, the city and the Metropolitan Pier and Exposition Authority, a state-city agency known as McPier, wanted to build a 1,200-room hotel on the property as part of a proposed $600 million redevelopment of the surrounding Motor Row district into an entertainment destination. But when the contested land became tangled in litigation, McPier opted to build a Marriott Marquis a few blocks east at Cermak and Prairie Avenue. Agency officials said they hoped to find a private developer for a boutique hotel on the contested land once the lawsuit was resolved.

The caveat was that the boutique hotel would have to be privately developed for the McCormick Place redevelopment project to stay on budget.

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James McHugh Construction's new offer to add a 28-story, 500-room hotel on the disputed land at Cermak and Indiana, in addition to a long-planned data center, could satisfy the city's goals, while still securing the data center McHugh has been planning.

The hotel will offer extended stay options and will be similar to a Hilton Garden Inn. Construction will begin mid-2015.