First Free Story (1 of 3)Join Skift Pro
The planned 1,200-room convention hotel to be built just west of McCormick Place will be operated by Marriott International Inc., convention officials decided Friday morning.
The hotel, expected to open in late 2016 next to the West Building, will be a Marriott Marquis, the company’s premium convention center brand.
Financial details of the 10-year contract, approved by the board of the Metropolitan Pier and Exposition Authority, were not disclosed. Officials of the authority, a state-city agency, said the contract would not be made public until it was finalized and signed.
Marriott’s proposal beat out one by Hilton Worldwide, the other finalist.
Hyatt Hotels, which operates the recently expanded Hyatt Regency McCormick Place on the exhibition campus, was among a number of major brands that also competed for the contract.
The $400 million hotel is part of a larger project that will include a multi-use arena that will host DePaul University basketball and a 500-room boutique hotel.
Ultimately, the authority will own the larger convention hotel, financing its construction with bonds backed by hotel revenues. Land acquisition costs will be paid for with city of Chicago property tax funds earmarked for economic development.
The authority also awarded a $7.9 million contract Friday morning to real estate firm Jones Lang LaSalle Americas Inc. to manage construction of the entire project, which aims to create an entertainment district next to the convention center.
Jones Lang LaSalle was the low bidder.
The authority’s board also took two more steps toward assembling the necessary properties for the project.
It voted to pay $1.95 million for one of four storefront properties it hopes to purchase on the 2200 block of South Michigan Avenue for development of restaurants and clubs adjacent to the planned Marriott.
The property, at 2215 S. Michigan in the Motor Row historic district, is not an ongoing business at this time, according to the authority.
The board also authorized the pursuit of a property at 14th and Michigan that could be turned over to Lakeside Bank in exchange for its current branch site at Cermak Road and Indiana Avenue, which is needed for the arena project.
The authority recently filed eminent domain lawsuits to attempt to acquire that property as well as a nearby parcel owned by CenterPoint Properties Trust.