Posted Mar 17, 2007, 2:50 AM
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Join Date: Jul 2006
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Aqua has found a buyer for the ballroom/meeting space that is being built behind Swissôtel...appropriately it's Swissôtel!
Swissôtel to more than double conference space
By Eddie Baeb
Crain's Chicago Business
March 01, 2007
The Swissôtel Chicago is more than doubling its conference space and adding new rooms in a $47-million expansion that’s to begin later this year.
The hotel’s owner, Host Hotels & Resorts Inc., is buying space in the Aqua high-rise being built next to the hotel by Magellan Development Group LLC as part of the local developer’s Lakeshore East residential complex.
Host Hotels will use the space, which will be connected directly to the Swissôtel, for two ballrooms, a banquet kitchen, smaller meeting rooms and other public spaces, CEO Christopher Nassetta told analysts during a conference call last week.
The expansion will add almost 63,000 square feet of meeting space, compared with 27,000 square feet there now, and also allow the company to convert existing meeting space on the building’s third and fourth floors into 32 hotel rooms.
The Swissôtel, at 323 E. Wacker Drive, is one of six hotels owned here by Bethesda, Md.-based Host Hotels. With 632 rooms currently, the Swissôtel is the 14th-largest hotel in Chicago.
Mr. Nassetta says the expansion should be completed by early 2009. A company spokesman declines to comment.
Almost half of the project’s cost, about $23 million, is for purchasing the space in the Aqua tower from Magellan.
Construction of the 82-story Aqua tower is getting under way, says Magellan president David Carlins. The building is to include 263 condos, 34 floors of apartments, retail space and a hotel that’s to be owned by Chicago-based Strategic Hotels & Resorts Inc.
Strategic’s hotel, expected to be a Fairmont, also will include a ballroom and meeting space, Mr. Carlins says.
If current trends continue, there may be plenty of business for both ballrooms.
Host Hotels says revenue per available room, a key gauge for full-service hotels, rose 15% last year in its North Central region. In a filing this week with the Securities and Exchange Commission, the company says the increase was fueled by its six Chicago hotels, which “benefited from a significant increase in the number of city-wide convention events in 2006.”
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