Swiss real estate company Acron has agreed to finance the construction of a new luxury hotel in Chicago. In times of low interest rates, such projects are proving increasingly popular with investors.
After the successful financing of the «Porsche Hotel» in Atlanta, Swiss real estate company Acron is embarking on a new project with similar prestige. Acron will finance the construction of a new hotel on Chicago's Navy Pier, a historic pier celebrating its 100th anniversary this year.
Navy Pier along Lake Michigan is an urbanized area covering 34 acres. It is home to several leisure and cultural facilities currently being expanded. Acron will finance the construction of a luxury hotel with 222 rooms and suites, André N. Lagler, head of sales at Acron.
Grand Opening in 2018
Acron's partners in the project are the Hilton Group, with its luxury brand Curio, the development company First Hospitality, Jackie Koo architects and James McHugh construction company. The kick off to the project is due in September with the completion scheduled in fall of 2018.
The seven-story Navy Pier Hotel will be covered by glass, include a bar on the top floor and a sky lounge offering views of the Chicago skyline. The hotel will be the center of the Festival Hall infrastructure, where a variety of entertainment joints are planned to be constructed over the coming two years. Even before this expansion, Navy Pier is attracting 9 million tourists annually.
Chicago – a Commercial Powerhouse
Chicago is the third-largest city in the U.S. with almost 10 million inhabitants. The home of Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT) is an commercial powerhouse. The «Windy City» is also home to 31 companies of the Fortune 500 and has two international airports – O'Hare and Midway.
The most recent project completed thanks to the financing of Acron is the Two Porsche Drive in Atlanta as reported by finews.asia. The luxury Solis hotel is situated next to the U.S. headquarters of German car manufacturer Porsche and its racetrack.
17 Percent Return on Investment
Acron will invest a total of $40 million in Chicago's Navy Pier project. To acquire a share in the project, investors need to put in at least $4 million. Acron expects a return of an annual 17 percent on these investments. For each of the construction project it finances, Acron is establishing an independent company whose legal framework is adapted to the local judicial system.
