Chicago’s iconic Virgin Hotel sold: Timeshare conversion ahead?

In late June 2025, Virgin Hotels Chicago, the brand’s first location, was sold for approximately $77.4 million to an affiliate of Accelerated Assets, a Michigan‑based firm recognized for converting properties into timeshare resorts. Located at 203 N. Wabash Avenue, the Old Dearborn Bank Building, this 250‑room landmark tower originally opened in January 2015 after a $117 million renovation that preserved much of its historic 1928 features. 

Accelerated Assets acquired the property from a joint venture of Virgin Hotels and Lionstone Development, who had bought the building in 2011 for about $14.8 million and financed a $50 million construction loan. The sale price averaged $309,600 per room, a sharp contrast to the $468,000 per room renovation cost. 

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The deal officially closed on June 30, 2025, and Virgin Hotels North America LLC will continue to manage the property under the Virgin brand, though the duration of the agreement remains undisclosed. Given Accelerated Assets’ history, including converting Chicago’s Hotel Blake into a timeshare resort, there’s speculation the property may shift toward a timeshare model in the future. 

Downtown hotel revenues in Chicago remain below pre‑pandemic levels, though investors continue placing sizable bets on the city’s recovery. The building’s landmarked status, along with Class L property tax incentives, taxed at only 10 percent of assessed value, gradually phasing up through 2027, likely bolstered its appeal. 

Constructed between 1926 and 1928 in ornate Neoclassical, Art Deco style by Rapp & Rapp, the structure was landmarked by the city in 2003. During its conversion into Virgin Hotels Chicago, original features such as the oak 1920s cigar bar, brass elevator doors and terra‑cotta detailing were preserved, while modern elements like a mobile app‑based guest services platform (“Lucy”) were introduced to enhance the guest experience.

With new ownership and potential repositioning ahead, the future of Virgin Hotels Chicago will hinge on how Accelerated Assets balances architectural heritage with evolving hospitality investment models and guest expectations. 

Source links:

• Virgin Hotels sells 250‑room property in Chicago where brand debuted in 2015 – CoStar News
  https://www.costar.com/article/2035968046/virgin-hotels-sells-250-room-property-in-chicago-where-brand-debuted-in-2015
• Virgin Hotel Chicago sold to timeshare firm – Chicago Business
  https://www.chicagobusiness.com/commercial-real-estate/virgin-hotel-chicago-sold-timeshare-firm
• 250‑Room Virgin Hotels Chicago Sold at Discount – Connect CRE
  https://www.connectcre.com/stories/250-room-virgin-hotel-chicago-sold-at-discount/