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LondonHouse Hotel Sells for $315M Before it Even Opens

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The hotel is still about a month away from opening

The LondonHouse is one of Chicago's most anticipated hotel openings this year — if not the most anticipated opening. Despite being a month away from opening, the 452-room hotel has sold for a whopping $315 million, Crain's reports. The breakdown comes to $697,000 per room, which represents a new record for Chicago in terms of price paid per room. Oxford Capital, the project's developer, will retain ownership over the first and second floor retail space. According to the report from Crain's, Oxford will lease back the hotel and operate it over the next 25 years.

While there has been some speculation that Chicago's hotel market may start cooling down, the hotel industry has witnessed six straight years of gains in revenue per hotel room. In the last two years, Chicago witnessed a number of notable hotel openings, including the Soho House in the Fulton Market area and the Chicago Athletic Association Hotel on Michigan Avenue.

The 23-story building at the corner of Michigan Avenue and Upper Wacker Drive was designed by noted Chicago architect Alfred S. Alschuler and built in 1923. Long known as the London Guarantee & Accident Building, the former office building and a new glassy addition being built just adjacent to it will reopen as a high end hotel in the coming weeks.