CHICAGO — Virgin Hotels has purchased the 27-story Old Dearborn Bank Building, located at 203 N. Wabash Ave. in Chicago, in an all-cash transaction for an undisclosed price. The company will convert the former office building into the 250-room Virgin Hotel Chicago, which is expected to open in fall 2013. Additionally, the hotel will feature meeting spaces, restaurants, lounges and other public areas.
C.W. and George L. Rapp Architects designed the building, which was built in 1928. “It’s a historic building, but it’s one that doesn’t put limits on the things we can do to modernize it for today’s travelers,” said Anthony Marino, managing partner of leisure and hospitality for the Virgin Group and head of Virgin Hotels. “Travelers get the authenticity with the convenience of some of the key modern features of the hotel.”
The John Buck Co. has been retained to redevelop the building. “We are thrilled to be able to partner with Virgin Hotels to revitalize this beautiful landmark building and to create an exciting new hotel destination in downtown Chicago,” said Jack Buck, principal of The John Buck Co., in a statement.
Marino said Chicago is a good fit for Virgin Hotels because of the arts and culture there, as well as having a strong entrepreneurial presence.
“A lot of high-tech start ups are taking root in Chicago,” said Marino. “Chicago’s got a freshness, friendless and modernity to it that is rooted in the city’s past.”
Although this is the first hotel the company has announced, Marino said he wouldn’t be surprised if another Virgin Hotel opens first because of the extent of the construction work to transform the Old Dearborn Bank Building into a hotel.
“We may follow with some others that don’t take as long to come to market,” said Marino.
Virgin Hotels, which was launched in September 2010, has been looking at properties in major urban markets in the U.S. and U.K., including Chicago, New York, Washington, D.C., Miami, Los Angeles, San Francisco, Seattle, Boston and London.
While this project is an adaptive re-use, Marino said the company is considering ground-up construction as well for future hotels.
— Savannah Duncan