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Discussion in 'Hilton | Honors' started by uggboy, May 22, 2015.
Hilton to open Conrad Chicago
The sale of the current Conrad Chicago to SPG that was just announced seems to have simply been to get the liquid assets to pay for opening this new Conrad Chicago. Super!
Looks like it, nevertheless, this announcement today with the new Conrad in Chicago was somewhat of a surprise.
I thought the owners of the original Conrad just decided to switch to SPG. It wasn't a sale to fund the acquisition...
Definitely a big difference if that is what happened. I was always under the impression that Hilton/Blackstone rather a franchisee is majority owner of all 23 or so Conrads around the world...
Hilton is a huge franchiser, they don't own a lot of "physical" properties, but I'm glad that a Conrad will open in Chicago again, and yes, it's newly build too.
Guess this was planned a few months ago
Looks like the Owners of Conrad Chicago is DiamondRock and bought it in 2006 for $117.5M
Then this month they announced they're converting to SPG.
Thus I dont think the sale funded the new Conrad ... it was planned before the "sale"/conversion.
Thanks for clarifying the story, which seems to go like this:
It was first announced that a SECOND Conrad was going to open in Chicago:
"Veteran hotelier Laurence Geller has closed a deal to turn a 224,000-square-foot Near North office building at 101 E. Erie St. into a luxury hotel.
Geller, former chief of Strategic Hotels & Resorts, has joined with Wanxiang America Real Estate Group, the U.S.-based arm of the Chinese auto parts manufacturer, to develop a 290-room hotel, reportedly under the Conrad hotel brand. It would be the second Conrad hotel within four blocks — there is a Conrad just off Michigan Avenue, at Rush and Illinois streets. Construction is scheduled to begin in early 2015."
Then it was announced that the current Conrad Chicago would be turned into a SPG Luxury Collection hotel. Contrary to what I'd thought, it turns out that Hilton Worldwide has not owned Conrad Chicago since 2006, when they sold it to Diamond Rock, which simply decided to convert it to a SPG hotel.
The timing seems to suggest that Diamond Rock [and maybe Hilton too] might have decided that two Conrads in Chicago would be too much...
I am simply glad there will still exist a Conrad Chicago!
Agreed - look forward to seeing this property.
Thanks for all the links and insights.
The existing Conrad was formerly a Le Meridien and will now join Starwood again within their Luxury Collection. While the new Conrad will be located in a converted office building with the interior to be designed by Pierre Yves-Rochon.