Sofitel Chicago Magnificent Mile up for sale

CHICAGO — The 415-key Sofitel Chicago Magnificent Mile has been put on the market, according to Crain’s Chicago Business, as Dallas-based Braemar Hotels & Resorts continues to sell assets in the wake of the REIT putting itself up for sale last year.

The listing puts the 32-story luxury hotel, one of Chicago’s more recognizable upper-tier hotel assets, in play.

In May 2025, Braemar transitioned the hotel into a franchise agreement and it would be managed by Dallas-based Remington Hospitality (which is also owned by Ashford Inc., which advises Braemar). At the time, Braemar said the management deal with Remington would be terminable upon sale of the property, which CEO Richard Stockton said would be accretive to the hotels’ value.

“We expect an immediate uplift in the value of the property due to the Sofitel brand remaining on the hotel and the management agreement with Remington being terminable on sale,” he said.

Crain’s said the sale of the property will test whether a recovering downtown Chicago hospitality market and growing hope for property tax predictability would make more hotel investors bullish on Chicago. It is one of only five Sofitels in the U.S. (Los Angeles, New York, Philadelphia and Washington, D.C.) for Accor.

Last October, Braemar sold the 410-key The Clancy in San Francisco for $115 million to San Francisco-based Sixth Street. The sale price represented a 5% capitalization rate based on the trailing 12 months of net operating income ended in August 2025.

In August 2025, Braemar’s board of directors announced it was initiating a process to sell the company, which includes nine resorts and five urban properties. The luxury hotel REIT said it doesn’t believe it “can flourish in today’s market environment.”

Hotel REITs are currently experiencing a public-private disconnect in their relative valuations. This disconnect especially puts pressure on REITs with luxury assets, like Braemar, which feels its portfolio’s value isn’t reflected in its stock price.

Private equity could be a likely buyer for a lot of Braemar’s properties, while high-net-worth individuals or groups could be potential buyers for the trophy asset-type of properties.