Manga Hotel Group Purchased Chicago Property for $21 Million
The Toronto-based firm acquired the former Royal Sonesta River North for a significant discount compared to 2019 prices.
Updated on Oct. 9, 2026 in Hospitality
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Manga Hotel Group has entered the Chicago market with the $21 million purchase of the Royal Sonesta River North hotel. The property, located at 505 North State Street, has been rebranded as Hotel 505 River North.
Why it matters
The acquisition highlights shifting valuations in the hospitality sector, as the purchase price reflects a 62 percent discount from the property's previous sale in 2019. It also marks a strategic expansion for the Toronto-based group following its growth in other major markets.
The transaction for the 261-key, 17-floor hotel equates to approximately $85,000 per room. This acquisition represents a 62 percent decrease in value from the $55 million price tag paid by Service Properties Trust in 2019.
The players
Manga Hotel Group
A Toronto-based hospitality firm that manages and invests in hotel properties across North America.
Service Properties Trust
A real estate investment trust that owns a diverse portfolio of hotels and net lease service-oriented retail properties.
The details
Manga Hotel Group acquired the property from Service Properties Trust, which had held the asset since 2019 and folded it into the Royal Sonesta brand in 2021. The new owners plan to integrate the location into the Toor lifestyle brand, occupying 17 floors of the 36-story building.
Timeline
October 2019: Service Properties Trust purchased the hotel for $55 million.
2021: The hotel was folded into the Royal Sonesta brand.
2026: Manga Hotel Group purchased two hotels in New York City.
October 2026: Manga Hotel Group purchased the Royal Sonesta River North.
Market Landscape
This deal underscores the ongoing correction in hospitality asset values following the pandemic-era peak in commercial real estate pricing. By securing the asset at a deep discount, Manga Hotel Group positions itself to compete against established urban players currently facing similar valuation pressures.
Guests and business travelers can expect operational shifts as the property transitions into the Toor lifestyle brand. The rebranding process may result in changes to loyalty program integration and standard service offerings at the 505 North State Street location.
The takeaway
Investors and travelers should monitor how this new brand integration influences pricing and amenities in the competitive River North corridor. The sale serves as a benchmark for local hospitality assets currently being repositioned by new ownership.
Further reading
For more information on the evolving local lodging market, visit the Chicago Hospitality section.
Source note: This article includes information reported by The Real Deal New York.
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