John Pritzker, son of the late Hyatt Hotels Corp. (H) founder Jay Pritzker, and investment company AJ Capital Partners agreed to buy the Chicago Athletic Association building and convert it to a luxury boutique hotel.
The partners will pay $13 million for the historic South Michigan Avenue property, formerly home to a private club, and spend $20 million on the conversion, John Pritzker said in a telephone interview. The purchase from Dallas-based Lone Star Funds is scheduled for completion by the end of the day on July 20, said Ben Weprin, founder of Chicago-based AJ Capital.
The hotel, which will have 240 to 260 rooms when it opens in early 2014, will be operated as a Thompson Hotels property, Pritzker said. Thompson, whose other locations include the Hollywood Roosevelt hotel in Los Angeles, is one of the brands owned by closely held Commune Hotels & Resorts. Pritzker is co- chairman of the New York-based company.
Commune has two other hotels in Chicago.
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