Jones Lang LaSalle arranged the $362.7 million refinancing of existing debt and renovation of the 1,639-room, full-service, luxury Palmer House Hilton Hotel on behalf of Thor Equities, LLC, on behalf of…
Jones Lang LaSalle arranged the $362.7 million refinancing of existing debt and renovation of the 1,639-room, full-service, luxury Palmer House Hilton Hotel on behalf of Thor Equities, LLC, on behalf of Thor Urban Property Fund, the owner. Jones Lang LaSalle secured senior debt and funding for the renovation of the hotel from Anglo Irish Bank.
Ben Singer and Matt Comfort of Jones Lang LaSalle’s Real Estate Investment Banking (REIB) group conducted a comprehensive marketing process that generated strong interest. Tom Fisher of Jones Lang LaSalle Hotels provided hotel expertise.
“Because the Palmer House is an irreplaceable, trophy asset, we took this property out to a broad, yet targeted group of lenders that we knew offered certainty of closing,” said Ben Singer, senior vice president-Real Estate Investment Banking, Jones Lang LaSalle. “This generated strong competition and competitive pricing that allowed us to best match a lender to Thor’s requirements. This refinancing further illustrates the attractiveness of prime high-quality hotels to the debt markets.”
Thor Equities purchased the hotel in August of 2005 from Hilton Hotels Corporation and has improved the performance of the hotel dramatically.
“We chose Jones Lang LaSalle because of the company’s comprehensive services and their proven ability to secure strong financing in the ever-changing capital markets,” said Joseph J. Sitt, CEO of Thor Equities. “This loan will provide the additional flexibility we need to execute our business plan and bring this asset into the top group of hotels in the city of Chicago.”
The hotel is currently in the initial stages of a major renovation that will enhance the hotel’s appeal while maintaining its unique character.
“The Palmer House has performed exceptionally well in 2006 and the Hotel has historically performed at or above the competitive set in occupancy,” said Tom Fisher, Managing Director of Jones Lang LaSalle Hotels in Chicago. “Following the proposed renovation, the hotel should be able to outperform its competitors. The hotel’s strong group booking pace, the favorable Chicago convention booking trends and the numerous demand generators proximate to the hotel all indicate strong future performance.”
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