Ian Schrager's Public Chicago hotel in the Gold Coast is on the market, four years after it opened, Crain's Chicago reports. The reason why it's for sale is clear: The hotel market is strong and owners are looking to cash out at a high price.
Schrager and financial partner Morgan Stanley Real Estate Funds have reportedly hired Eastdil Secured to look for buyers for the 285-room hotel, formerly the Ambassador East.
When the hotel does sell, there is good chance the name of the hotel will go away, too. Schrager launched the Public brand with the expectation of more to follow. Under the management contract, the brand can be changed post-sale.
“We love the project and we love the city,” Schrager told Crain's. “The neighborhood is great, but the hotel market is incredibly strong. We'd be remiss if we didn't explore our strategic alternatives.”
While no sale price target was disclosed, people familiar with property told Crain's that he and Morgan Stanley are seeking as much as $300,000 a room, or about $86 million. A Schrager-Morgan Stanley joint venture spent about $60 million acquiring and renovating the 16-story building.