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Old February 14th, 2007, 11:03 PM   #81
depressio
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anyone know anything about this one?
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Old February 14th, 2007, 11:21 PM   #82
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Quote:
Originally Posted by depressio View Post
anyone know anything about this one?
It looks to be on the back-burner--for now. The hotel market is doing very well right now. Basically, InterContinental will incur losses during the window of time within which the old building is demolished and the new building is constructed. Therefore, it makes sense from a business standpoint to incur such losses at a time when the hotel market is a bit slower. Of course, once the new building is complete, InterContinental stands to make much more money, as it will have many more hotel rooms which are also of a higher caliber.
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Old February 15th, 2007, 02:29 AM   #83
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Damn, that's some pretzel logic right there. A good hotel market is actually DISCOURAGING a hotel expansion. Capitalism is messed-up, haha (but still the best way).
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Old February 15th, 2007, 05:48 AM   #84
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Damn, that's some pretzel logic right there. A good hotel market is actually DISCOURAGING a hotel expansion. Capitalism is messed-up, haha (but still the best way).
Exactly. This is only the case because this project involves demolition of a revenue-generating structure. If it were a simple addition, then the timing wouldn't be as much of an issue.
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Old February 15th, 2007, 06:29 AM   #85
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So, when this boom finally comes to an end (hopefully not anytime soon,) this will be the last project, and the boom will end on a bang!
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Old February 19th, 2007, 06:44 AM   #86
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The booms always worry me . . . the biggest booms come before the biggest busts. E.G. 1929.
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Old June 1st, 2007, 12:00 AM   #87
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http://chicagobusiness.com/cgi-bin/news.pl?id=25196

Strategic Hotels sells a 49% stake in InterContinental

May 31, 2007
By Thomas A. Corfman


Strategic Hotels & Resorts Inc. has sold a stake in two hotels, including the historic InterContinental Chicago on North Michigan Avenue, to the real estate investment arm of the government of Singapore, in a deal that values the properties at $450 million.

The Chicago-based real estate investment trust (REIT) said Thursday it had sold a 49% stake in the 792-room Chicago property and the 419-room Hyatt Regency La Jolla, north of San Diego.

The net proceeds from the transaction will be between $130 million and $150 million, says Laurence Geller, Strategic’s CEO.

“It gives us balance sheet flexibility; we can put it (the money) into higher-growth investments,” he says.

The joint venture could boost Strategic’s long-running plans to replace the lackluster north tower of the InterContinental, 505 N. Michigan Ave., with a 71-story hotel/condominium skyscraper.

A starting date for that project, which was announced in November 2005, has not yet been set.

The InterContinental is “is a very complicated asset with lots of upside,” Mr. Geller says.


The deal may also help placate restless shareholders, who have seen Strategic’s stock trade at a discount to its rival hotel companies — a sector many consider undervalued. Meanwhile, Mr. Geller has seemingly been resolute in his effort to discourage a buyout, even though private-equity firms and other hotel companies have targeted high-end hotel portfolios. Instead, the REIT has focused in recent months on improving the performance of its 20-hotel portfolio.

Strategic didn’t have to look too far for a joint venture partner: GIC Real Estate Pte Ltd., a unit of Government of Singapore Investment Corp., which manages that country's foreign investments. GIC Real Estate was previously a partner with Strategic in InterContinental Hotel in Prague. In August, the REIT bought GIC Real Estate’s stake.

"This is the right partner for us," Mr. Geller says of about GIC.

That same month, Strategic began exploring financial alternatives for the Michigan Avenue hotel.

The REIT bought an 85% stake in the Chicago property in 2005, and subsequently bought the remaining interest.

As a part of the deal with GIC, Strategic will contribute the two hotels to a new joint venture, but retain management of both properties. Combined the hotels are expected to have earnings, before depreciation and other charges, of $34.5 million in 2007.
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Old June 1st, 2007, 12:24 AM   #88
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Great find, spy. Now I have a glimmer of hope this one may end up a reality.
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Old January 7th, 2008, 04:44 AM   #89
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glimmer of hope

was in the starbucks today at the Intercontinental... walked in a chatted briefly with an employee... seems this project is still very much alive... she knew all about the proposed tower and said it was "waiting for city approval" but did not have any info on when it may actually happen. She said that part of the new project would be 2 floors of expanded retail for the ground floor...

encouraging news? I think so!
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Old June 12th, 2008, 12:47 AM   #90
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Don't stop believing

Quote:
Originally Posted by spyguy View Post
http://www.chicagorealestatedaily.com/cgi-bin/page.pl?id=2166

Chicago: Intercontinental Hotel Expansion, 505 N. Michigan Ave., 71-story hotel expansion and renovation, August 2010, $60 million.
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Old June 12th, 2008, 09:06 PM   #91
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Only $60 million?
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