Chicago is Hotest Hotel Market

The Chicago hotel market is the hottest in the U.S. 

 

This is because Chicago hotel prices, which were underpriced compared to other big cities, are appreciating rapidly.  This is causing investors, who recently bought properties, to become "unintentional flippers", because they are hitting their return requirements years earlier than they expected.

 

For example, JER Partners recently agreed to sell the Westin O'Hare in Rosemont (near O'Hare airport) to Ashford Hospitality for $125 million.  JER had bought the Westin 11 months earlier for $106 million.