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The Wade (former W Chicago Lakeshore)

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Chicago, IL
4.8 of 5

Scored using an estimated 90% discount to replacement cost; spread not graded (no trailing-12-month cap rate or NOI disclosed); supply not graded (closures listed without room counts); 3 of 5 factors graded.

Earlier v1.1 grade 4.0 (supply scored 1; withdrawn Nov 1: room count unavailable)

Rubric v1.1 (current)Rubric v1 (original): Insufficient public data

Public-data underwrite. The buyer's information set was larger. Decision support, not a recommendation.

Price
$25Mfirst confirmed price (press, Oct 25, 2026); a $20M to $25M range was reported at announcement
Price per key
$48k per key
Keys
520
Buyer
Vinayaka Hospitality (Ketu Amin)
Seller
Park Hotels & Resorts (PK)
Announced
Sep 17, 2026
Status
Closed (reported by press, Oct 25, 2026)The Real Deal via Yahoo Finance, Oct 25, 2026: $25M close reported ("earlier this month"; no exact close date)

Price: $25M close first reported by The Real Deal on Oct 25, 2026 ("earlier this month"); no recorded deed located yet. If a deed shows a different price, the deed price is used.

Grade at announcement

As of Sep 17, 2026

Price and basis

Price per key as of Oct 25, 2026 (first confirmed price).

Operating performance

  • Implied cap rate vs 10-year Treasury spread 25%No trailing-12-month cap rate or NOI disclosed at announcement.Not graded

    No trailing-12-month cap rate or NOI disclosed at announcement.

    None (not graded)

  • Demand trajectory 15%4

    Lodging tax receipts +2.87% (trailing 12 months vs prior 12, City of Chicago hotel tax revenue, calendar 2025 vs 2024, the latest full year published; $161.1M vs $156.6M (printed +$4.5M))

    Band: 4 = flat to up under 5%

    ReportJun 25, 2026 (opens source)+ Choose Chicago economic impact page

Cited figures shown for reference. They don’t enter the grade.

Implied cap rate vs 10-year Treasury spread

  • 10-year Treasury par yield, Sep 17, 2026 close: 4.94%. No qualifying cap rate, so no spread is computed. source · Sep 17, 2026

Access: airlift and drive (not a rubric factor; no weight)

  • Airlift: Chicago O'Hare (ORD) passengers, calendar year to date Jan to Jun 2026, +6.67% (year-to-date fallback). source · Aug 24, 2026
  • Drive, context only: Illinois Tollway vehicle transactions, H1 2026: +2.49%; the Tollway doesn't serve downtown. source · Aug 19, 2026

Financing and material risks

  • Supply backdrop 15%The source lists 8 Sonder properties removed from inventory but not their room count, so net supply can't be computed.Not graded

    The source lists 8 Sonder properties removed from inventory but not their room count, so net supply can't be computed.

    ReportAug 25, 2026 (opens source)+ Choose Chicago, Hotel Capacity Update, Aug 2026 (data: Build Central, LARC)

  • Debt and transaction context 15%5

    Arm's-length REIT sale of a non-core hotel under PK's stated divestiture program; no loan event, special servicing or receivership reported for this hotel, and no buyer-seller relationship stated by Sep 17, 2026.

    Band: 5 = Clean arm's-length sale with no distress

    PressSep 17, 2026 (opens source)

Cited figures shown for reference. They don’t enter the grade.

Debt and transaction context

  • Cited context only: the hotel last traded for $126.0M in 2012 (Chesapeake Lodging Trust's purchase from Starwood). source · Aug 21, 2012
  • Cited context only: PK recognized an impairment of about $18M on two unnamed non-core hotels in Q2 2026; the filing doesn't say whether The Wade was one. source · Aug 7, 2026

Weights of ungraded factors are spread across graded ones.

Overall4.8 of 5 · 3 of 5 factors graded
Rubric v1 (original), graded Oct 26, 2026: Insufficient public data

replacement cost not graded; spread not gradeable (no trailing-12-month cap rate or NOI disclosed); 2 of 5 factors graded; insufficient public data.

  • Price per key vs replacement cost per key 30%Only a $20M to $25M price range was public at announcement (Sep 17, 2026), so price per key isn't graded.Not graded

    Only a $20M to $25M price range was public at announcement (Sep 17, 2026), so price per key isn't graded.

    None (not graded)

  • Implied cap rate vs 10-year Treasury spread 25%No trailing-12-month cap rate or NOI disclosed at announcement.Not graded

    No trailing-12-month cap rate or NOI disclosed at announcement.

    None (not graded)

  • Supply backdrop 15%Choose Chicago lists the downtown pipeline (Aug 2026) but states no share of existing rooms; no single public source gave the total pipeline share by Sep 17, 2026.Not graded

    Choose Chicago lists the downtown pipeline (Aug 2026) but states no share of existing rooms; no single public source gave the total pipeline share by Sep 17, 2026.

    None (not graded)

  • Demand trajectory 15%4

    Lodging tax receipts +2.87% (trailing 12 months vs prior 12, City of Chicago hotel tax revenue, calendar 2025 vs 2024, the latest full year published; $161.1M vs $156.6M (printed +$4.5M))

    Band: 4 = flat to up under 5%

    ReportJun 25, 2026 (opens source)+ Choose Chicago economic impact page

  • Debt and transaction context 15%5

    Arm's-length REIT sale of a non-core hotel under PK's stated divestiture program; no loan event, special servicing or receivership reported for this hotel, and no buyer-seller relationship stated by Sep 17, 2026.

    Band: 5 = Clean arm's-length sale with no distress

    PressSep 17, 2026 (opens source)

After the deal

Tracked separately. Not part of the grade.

  1. T0 · at announcement
    Sep 17, 2026
  2. T+1
    Lands Sep 2027
  3. T+2
    Lands Sep 2028
Sources (7)
The Wade (former W Chicago Lakeshore) · Recent Deals · Bungah Capital Intel