CHICAGO Hotel Indigo Chicago Downtown Gold Coast is being foreclosed on.
The 165-key property, owned by affiliates of Chicago-based Neighborhood Development Corp., owes about US$27 million on its mortgage. According to foreclosure documents, the hotel has not made any debt payments since January.
According to a Crain’s Chicago Business report, the hotel generated just US$719,000 in cash flow before debt service last year, well short of the US$2 million owed in required loan payments. The property was appraised in April at US$18.2 million, half of its estimated value in 2008.
The hotel will retain its Hotel Indigo branding, and IHG will continue to manage the property.
The hotel is at least the third high-profile hotel in downtown Chicago to go into foreclosure this year, following foreclosures against Hotel Burnham and The Allerton Hotel. The two-year-old InterContinental Chicago O’Hare in Rosemont has also been taken over by lenders.