Citing turmoil in the financial markets, the owner of the Fairmont Chicago hotel has dropped plans for a 225-room expansion in the Aqua building, an 87-story tower being built across the street.
Strategic Hotels & Resorts Inc., which bought the Fairmont in 2005, said it has terminated a $84-million contract to buy about 15 floors in Aqua, a mixed-use high-rise under construction at 225 N. Columbus Drive, just east of the Fairmont.
The Chicago-based real estate investment trust (REIT) telegraphed the move in August, when it told analysts that it was considering delaying the Fairmont expansion and other projects as part of a plan to conserve cash in a declining market.
“Despite the opportunities this property presents, the financial markets and economic operating environment have changed significantly since we first entered into the agreement to purchase the space in 2006,” said Strategic President and CEO Laurence Geller.
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