One of Chicago's most famous hotels just traded hands again, and it did so at a markdown. The storied Blackstone Hotel, a 23-story, roughly 335-room landmark on South Michigan Avenue, has been acquired by Vinayaka Hospitality in a deal that closed this month for about $43.2 million, according to public records. The sale brings a onetime trophy downtown asset under the control of a local investor group after years on the market.
According to CoStar, Vinayaka Hospitality, led by suburban businessman Ketu Amin, bought the Blackstone at 636 S. Michigan Ave. The $43.2 million price tag is well below the $59.5 million the property last commanded in 2016, a stark reminder of how far downtown hotel values have slid.
Loan Maturity Helped Push The Deal Over The Finish Line
The timing of the sale appears closely tied to a looming loan deadline. Apollo Commercial Real Estate Finance said on its April earnings call that the remaining commercial mortgage tied to a Chicago hotel was on non-accrual and carried an amortized cost basis of about $42 million. According to an earnings transcript, Apollo expected that balance to be repaid at the loan's May maturity through a property sale.
The same transcript notes that a purchase agreement had been executed in the first quarter and that hard deposits were already in hand from the sponsor. Those details line up neatly with this month's transfer of the Blackstone, suggesting the sale was effectively choreographed around the loan payoff.
Historic Pedigree, Discounted Price
The Blackstone, built in the first decade of the 20th century and long nicknamed the "Hotel of Presidents," has no shortage of lore. The property was designated a Chicago landmark in 1998 and is widely cited as the setting of the original "smoke-filled room" tale tied to the 1920 political conventions.
The building continues to operate as part of Marriott's Autograph Collection at 636 South Michigan Avenue, where its ornate public spaces and a presidential suite remain a draw for visitors. Local historical resources note the hotel's deep political and civic connections that helped cement its reputation over the last century.
Who Sold, And Who Got The Call To Broker It
According to CoStar, longtime owners Fundamental Advisors and Sage Hospitality Group completed the sale this month, with JLL brokers Adam McGaughy and John Nugent representing the sellers. The deal closed at a level far below the 2016 price, underscoring how downtown Chicago hotel valuations have been recalibrated in the wake of the pandemic.
Buyer Keeps Shopping Big On Michigan Avenue
Vinayaka Hospitality has been busy in the neighborhood. Reports show the firm also bought the 752-room Westin Michigan Avenue last year in a separate, high-profile transaction, signaling a strategy that focuses on large, full-service hotels in prime downtown locations. ConnectCRE and other trade outlets covered that earlier deal.
What Comes Next For The Blackstone
For now, the new owner is keeping its cards close to the vest. Vinayaka has not released details about any immediate operational changes or renovation plans. The Blackstone remains in Marriott's Autograph Collection, and industry watchers will be paying attention to see whether Vinayaka pours money into upgrades, repositions the historic property, or largely sticks with the hotel's current branding and programming.
