One of Chicago’s largest hotels is changing hands in a deal that highlights the city’s ongoing hospitality rebound and the deep discounts still shaping the market. Suburban investor and IT executive Ketu Amin is under contract to buy The Westin Michigan Avenue Chicago for about $72 million, according to The Real Deal .

The 752-room property at 909 N. Michigan Ave. is being sold by Pebblebrook Hotel Trust, a Maryland-based real estate investment trust (REIT) that has been marketing the hotel since last year. The sale price works out to less than $96,000 per room, a steep discount compared to previous valuations.

Deep discounts signal market shift

The purchase price amounts to less than a 5 percent cap rate, a sign of the challenges facing hotel owners amid rising interest r

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