A joint venture led by Gencom, in partnership with GD Holdings, announced a $125-million refinancing for The St. Regis Chicago, a 192-key hotel in Chicago’s Lakeshore East Loop neighborhood. The financing was arranged with Banco Inbursa and replaces $76 million in original acquisition financing provided by Varde Partners.
The joint venture acquired The St. Regis Chicago in May 2023. The transaction marks the fourth financing Gencom has completed with Banco Inbursa. Gencom and GD Holdings were represented by Stearns Weaver Miller, while Banco Inbursa was advised by Gibson Dunn.
“The refinancing secured with Banco Inbursa reflects the strong operational performance and market positioning the St. Regis Chicago has achieved since our acquisition three years ago,” said Karim Alibhai, founder and principal of Gencom. “As the first luxury hotel to open in downtown in over a decade, the property has resonated with both business and leisure travelers, as well as the local community, reinforcing our conviction in the Chicago market’s long-term fundamentals.”
“This successful refinancing of the St. Regis Chicago underscores our ability to drive value through operational execution and strategic asset management while reinforcing our confidence in the hotel’s continued performance,” said Alessandro Colantonio, chief investment officer of Gencom. “It also represents an important expansion of our partnership with Banco Inbursa as we continue to access global capital sources across both asset acquisitions and refinancings.”
“We believe The St. Regis Chicago is one of the most compelling luxury hospitality assets in the country. This refinancing positions us to continue executing at a high level while unlocking the full potential of the property over the long term,” said Abraham Marcos, principal of GD Holdings.
The St. Regis Chicago occupies the first 11 floors of a three-tower mixed-use development. The tallest tower rises 101 stories, making it the third-tallest building in Chicago. The hotel features approximately 12,000 square feet of meeting and event space, including the 5,000-square-foot Astor Ballroom and more than 21,000 square feet of amenities, including the St. Regis Spa, fitness center, indoor pool and rooftop terrace. Five dining venues span approximately 38,000 square feet and 580 seats, including Miru and Tre Dita, both operated by Lettuce Entertain You Enterprises.