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hicago's Magnificent Mile hotels have seen significant increases in assessed value, with some properties valued at twice their pre-pandemic levels. According to Cook County Assessor Fritz Kaegi, these hotels are doing better than ever, despite many still struggling to reach pre-pandemic revenue levels. The InterContinental Chicago hotel, for example, saw its assessed value jump 284% to $96.2 million, while the Omni Chicago's value increased by 186% to $51.1 million.

    While the industry has shown signs of recovery in key performance indicators like revenue per available room, actual revenue numbers are still slightly behind pre-pandemic levels when adjusted for inflation. The high interest rate environment has also weighed down commercial property values nationwide. However, Kaegi's office notes that hotels along the Magnificent Mile have rebounded faster than expected due to reduced operating costs and strong room rates.

    The complex real estate market is reflected in recent sales data, including Brookfield Properties' sale of a retail and office building at 605 North Michigan Avenue for $47 million - a 66% discount from its 2016 sale price. Water Tower Place, the vertical mall at 835 North Michigan Avenue, saw a 96% increase in assessed value despite a 30% vacancy rate and loss of several tenants. Kaegi's office values it higher than last year's appeal-adjusted figure, sparking concerns among property owners about potential financial implications and the need to challenge their assessments through the Cook County Board of Review.