Vedara Ventures, in partnership with Avasa Hospitality, has completed the acquisition of a distressed boutique hotel located just steps from Chicago’s iconic Magnificent Mile, reinforcing our long-term conviction in the continued recovery and evolution of downtown Chicago’s hospitality market.

Earlier this month, the joint venture acquired the 15-story, 122-room property at 100 E. Chestnut Street for $13.2 million. The hotel, formerly known as the Tremont Chicago and later rebranded as the Selina Hotel, most recently served as a temporary city homeless shelter following a foreclosure process that began during the pandemic.

The acquisition represents a compelling value opportunity in one of the city’s most sought-after lodging corridors. The property last traded in 2018 for $22.5 million, prior to the pandemic’s unprecedented impact on urban hospitality. Like many downtown assets, the hotel faced prolonged closures and operational challenges, ultimately leading to foreclosure and interim adaptive use by the City of Chicago during a period of acute humanitarian need.

“This is the type of situation we look for at Vedara,” said Kush Patel, Founder and CEO of Vedara Ventures. “A fundamentally strong asset in an irreplaceable location that went through a difficult chapter, but still has a clear path forward. We’re grateful the building was able to serve the city when it was needed most, and we’re excited to thoughtfully reposition it for what comes next along the Magnificent Mile.”

As downtown Chicago continues to regain momentum, recent transactions along North Michigan Avenue reflect renewed investor confidence, with several well-located hotels changing hands at meaningful discounts to pre-pandemic values. Vedara and Avasa view this period as a strategic entry point to acquire and reposition high-quality hospitality assets with strong long-term fundamentals.

While plans for the property are still being evaluated, the joint venture will explore repositioning strategies that align with evolving travel patterns and the broader transformation of the Magnificent Mile and surrounding Gold Coast neighborhood. The building is also well known as the former home of Ditka’s Restaurant, a longtime Chicago institution that closed during the early stages of the pandemic.

Avasa Hospitality brings deep operational experience to the partnership, with a growing portfolio of hotels across the Chicago region, including the Renaissance Chicago O’Hare Suites and the DoubleTree by Hilton Schaumburg, both acquired since 2023. The acquisition was financed in part with a $10 million loan from Millennium Bank.

At Vedara Ventures, we focus on opportunistic investments that combine strong real estate fundamentals with experienced operating partners and thoughtful execution. This joint venture reflects our belief in Chicago’s long-term resilience and our commitment to investing in assets that can once again contribute meaningfully to the city’s hospitality landscape.