“A group of high-net-worth investors has purchased the historic Ambassador Chicago hotel out of receivership and added it to a cluster of independently managed boutique inns around the city.
“A venture managed by Wheeling-based investor Marsha Forsythe acquired the 285-room property at 1301 N. State Parkway, according to Cook County Circuit Court records and people familiar with the deal. The sale resolves a 2023 foreclosure lawsuit alleging the previous owner, an affiliate of Chinese investment firm Gaw Capital, failed to pay off a $38.5 million loan.
“The exact purchase price was not immediately clear, but court records show the buyer reached a deal last summer with a court-appointed receiver overseeing the property to pay $30.5 million for the hotel.
“News of the acquisition was announced today by The Chicago Hotel Collection, a local hospitality management company that operates two other hotels downtown and another in Wrigleyville. A press release from the firm did not list the investors behind the deal, but Chicago Hotel Collection Manager W. Pierce Hutchings confirmed his firm purchased the property on behalf of a group of high-net-worth family office investors that he declined to identify.
“‘We are thrilled to welcome Ambassador Chicago into our collection,’ Hutchings said in a statement, which noted new ownership ‘will honor (the hotel’s) storied legacy while introducing modern enhancements to elevate the guest experience.’
“The purchase stands to breathe new life into the 17-story property as downtown Chicago continues its comeback from the pain of the COVID-19 pandemic. The future of the Ambassador, which originally opened in 1926 and stood as a Chicago institution for decades, looked murky in 2022 when the Gaw venture hired a broker to sell it.
“The Ambassador is the largest hotel in The Chicago Hotel Collection’s portfolio. Its other three properties are at 166 E. Superior St. in Streeterville, 312 W. Chestnut St. in River North and 3475 N. Clark St. in Wrigleyville. All three of those properties are owned by investors affiliated with Chicago-based real estate firm Marc Realty.” (Ecker, Crain’s Chicago Business, 3/18/25)