More than half-a-billion dollars is what it will take to own Chicago's Palmer House Hilton. At least that is what the owner of the city's second-largest hotel, Thor Equities, is seeking—specifically $575 million, writes Crain's Chicago. The hotel has 1,639 rooms and is being marketed Eastdil Secured.
New York-based Thor Equities put the hotel up for sale two years ago but ended up refinancing it last year for $420 million—$55 million than its previous debt.
The only larger hotel in Chicago is the 2,019-room Hyatt Regency Chicago on Wacker Drive.
The Palmer House's appraised value was $560 million as of July 2014, Crian's writes, citing a Bloomberg loan report on the commercial mortgage-backed securities (CMBS) debt on the property. That is up from $436 million in July 2012.
The hotel generated revenue of $126.4 million in 2014, up from about $115.6 million in each of the previous two years, according to loan reports. New cash flow before debt payments was $37.6 million in 2014, an increase from $31.6 million in 2013 and $33 million in 2012.