John Pritzker, son of the late Hyatt Hotels Corp. 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.