Jones Lang LaSalle


LaSalle Buying House of Blues Hotel for $114M
By Mark Ruda
Last updated: February 22, 2006 05:12pm

CHICAGO-LaSalle Hotel Properties has agreed to pay $114.5 million for the 367-room House of Blues Hotel, 115,000 sf of Marina City retail space and 896 parking spaces. The Marina City retail space is leased to a tenant roster that includes Smith & Wollensky Steakhouse, Crunch Gym, Bin 36 restaurant, 10-Pin Bowling Lounge and Bank One.

The deal with Marina City Hotel Enterprises is expected to close by April. Bethesda, MD-based LaSalle Hotel Properties already is buying the Westin Michigan Avenue for $215 million from JER Partners. That deal is scheduled to close by March 9. When the House of Blues is added to the portfolio, LaSalle Hotel Properties will have three Downtown properties totaling 2,285 rooms, the majority of those rooms at the Marriott at 540 N. Michigan Ave.

House of Blues Hotel already has a competitor across Dearborn Street in the Westin Hotel. However, Kinzie Development South, LLC, is expected to get a recommendation Thursday morning from the city council committee on zoning for plans that include a 525-room hotel at 400 N. Dearborn St.