Boutique legend, Ian Schrager, has put his Public Hotel in Chicago on the market, just four years after it opened.
The 285-bedroom hotel, which was the first establishment he launched under the Public brand name in 2011, will now seek a new owner as it’s reported that Schrager and financial partner Morgan Stanley Real Estate wish to capitalise on the strong market right now.
Schrager and Morgan Stanley have reportedly hired Eastdil Secured to hunt for potential buyers who are willing to pay a rumoured price of around $86m, according to those familiar with the property.
When the hotel sale is signed, there is a strong possibility that the Public name will go altogether too. Schrager launched the Public brand in 2011 with the expectation that there would be more to follow, but has since ploughed his efforts into the EDITION with Marriott partnership. Under the management contact for the Public Hotel, the brand can be changed post-sale.
Speaking to Crain’s Chicago, Schrager said: “We love the project and we love the city. The neighborhood is great, but the hotel market is incredibly strong. We’d be remiss if we didn’t explore our strategic alternatives.”
The market is Chicago is incredibly strong at the moment, with the launch of the first ever Virgin Hotel in January and other strong lifestyle brands looking to exploit the area.