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Originally Posted by Rocket1
The article mentions that the hotel will be "5 star".
Should folks be concerned that too many luxury hotels might be in current development?
Luxury hotels are part of:
Trump
Waterview
Elysian
Aqua
Mandarian Oriental
Intercontinental
and now 560 N Fairbanks.
Are there really that many additional visitors to Chicago looking to spend $500+/night on a hotel room?
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This got me thinking - it's not so much regular luxury hotel rooms that concern me. The downtown hotel market, including the luxury segment, is as strong as its ever been. I think that there is a window that's open right now that could accomodate a good deal of new supply in all of the moderate to super-luxury segments of the market. What continues to concern me, however, is that developers are continuing to view condo-hotels as viable in Chicago. I know I've mentioned this before, but condo-hotels are going to be a very thin market and IMO will only work in a few very select cases. Otherwise, some of these developers need to stop being so lazy and go to the capital markets for traditional hotel financing sources, which by the way are fairly abundant right now...