The proposal comes nine months into a COVID-19 crisis that has mauled the hospitality industry and pushed many hotel owners to the financial brink. Occupancy at downtown hotels that are still open hasn t been higher than 27 percent for any week since mid-March, according to hotel research firm STR. The prolonged crisis has forced many owners to stop making mortgage payments, raising questions about whether they ll be able to keep control of their properties.
But Kornota and Klok, who developed the Dana Hotel in River North (now known as the Eurostars Magnificent Mile) and have a history of building boutique properties in Chicago neighborhoods, foresee a much rosier picture in the neighborhoods especially by the time they d be able to build and open the new property. Kornota admits, though, that the market may not be back to pre-pandemic levels for another two or three years.