New York-based Tishman Realty has exercised its option to sell the 1,218-room Sheraton Grand Chicago to Marriott International for $500 million. The deal will have Marriott parting with $300 million for the hotel and $200 million for the land below the property.
The sale is the latest milestone in an ongoing legal battle between the two entities dating back to when Marriott acquired Starwood Hotels in 2016. In 2017, Tishman sued, alleging that the deal put a nearby Marriott property in unfair competition with the Sheraton. The option for Marriott to purchase the hotel at a later date was part of the settlement of that lawsuit.
Marriott currently operates the hotel located at 301 E North Water Street in the River North district. Tishman Realty was part of the development team that completed the hotel, which is one of the largest in Chicago, in 1992.
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