Virgin Hotels Chicago stands as a masterclass in blending historic architecture with cutting-edge technology and a modern take on hospitality. Located in the heart of Chicago’s Loop, this hotel served as the flagship project for the Virgin Hotels brand. From the start, it was designed to cater to the needs of modern business travelers, with a pioneering focus on female guests. The building itself boasts a storied past dating back to the 1920s. Having weathered economic crises, multiple owners, and a massive renovation, it has been reborn in the 21st century as one of the city’s most innovative destinations. Read more at chicago1.one.
Historical Roots
Long before it was a hotel, the structure was known as the Old Dearborn Bank Building. Situated at the intersection of East Lake Street and North Wabash Avenue, construction took place between 1926 and 1928—a period of immense economic prosperity in the U.S. just before the onset of the Great Depression.
The architectural vision came from brothers George L. and Cornelius W. Rapp, founders of the legendary firm Rapp and Rapp. Designed in the Neoclassical style, the building features intricate terra cotta ornamentation inspired by medieval and mythological motifs—decorative touches typical of the grand movie palaces of that era. Standing 27 stories tall (approximately 300 feet), the structure combines a steel frame with a light brown brick façade. In 2003, it was designated a Chicago Landmark, a status that would significantly shape its eventual restoration. While the original bank didn’t last long due to the economic crash, the building spent decades serving as an office hub, slowly losing its original luster as it passed through various owners.
The Virgin Hotels Concept
A new chapter began in 2011 when the Virgin Group, led by British billionaire Richard Branson, acquired the property. The move was part of a strategic play to enter the North American market by snapping up prime real estate during a market downturn. Purchased for roughly $14 million, the building was earmarked to become the brand’s very first hotel. To bring the vision to life, Virgin partnered with The John Buck Company, while Rockwell Group Europe worked alongside Virgin’s in-house team to craft the interiors. An additional $50 million was poured into an extensive renovation that transformed the former bank into a chic, modern boutique hotel.
Because of its landmark status, the renovation was a meticulous process that took longer than expected. Every modification required approval from the Commission on Chicago Landmarks. Great care was taken to preserve authentic 1920s details, including the oak cigar bar, brass elevator doors, and ornate ceilings. At the same time, the building was brought into the modern age with updated masonry, windows, and structural steel. When it finally opened its doors on January 15, 2015, the hotel debuted with 250 rooms, ranging from standard “chambers” to luxury suites and penthouses—all designed with a pet-friendly policy and a focus on the modern traveler.
The project was as much a financial feat as an architectural one. In 2020, the property was refinanced with a $37 million loan from Prime Finance Partners. The move reflected the owners’ efforts to optimize their financial model during a volatile period for the global hospitality industry.
A Tech-Forward Experience
One of the defining features of Virgin Hotels Chicago is its “digital-first” service model. Guests are introduced to Lucy—a mobile app that acts as a personal digital assistant. Through Lucy, guests can order room service, adjust the thermostat, control the TV and music, or chat directly with staff. At the time of its opening, this tech integration made it one of the most advanced hotels in the world. Richard Branson also championed “street pricing” for the hotel’s minibars and amenities, eliminating the hidden fees and price gouging common in traditional hotels.
The service staff also breaks the mold. Instead of traditional front-desk clerks, the hotel employs “Ambassadors” who guide guests through their stay and handle all requests with a personal touch.
The 250 guest rooms feature a unique “two-chamber” layout, separating the sleeping area from a dedicated dressing room equipped with a full vanity and backlit mirror. This functional design allows one guest to get ready while the other rests undisturbed. Modern perks include high-speed free Wi-Fi, ergonomic beds with adjustable headboards, and designer Smeg refrigerators. True to the brand’s promise, snacks in these minibars are sold at local convenience store prices.
The heart of the hotel is the Commons Club, a sprawling second-floor social space. It houses a bar, restaurant, and lounge, alongside curated book collections and local artifacts. Built within the building’s former banking hall, the space serves as a symbol of the property’s transformation from a cold financial institution into a vibrant cultural hub. The interior design masterfully bridges the gap between contemporary style and historic grit.
The hotel has garnered mostly positive reviews from critics. Journalist Jennifer Parker praised its high-tech atmosphere and social vibe, though she questioned some of the specific marketing aimed at women. Famed architectural critic Blair Kamin lauded the renovation as a success story in balancing development with heritage preservation. While noting it doesn’t aim for the same ultra-luxury tier as the Four Seasons or The Ritz-Carlton Chicago, he acknowledged that it has carved out its own unique and successful niche.
A New Chapter in Ownership
In June 2024, the hotel reached another milestone. An affiliate of Accelerated Assets, based in Birmingham, Michigan, acquired Virgin Hotels Chicago for approximately $77.4 million. The seller was a joint venture between Lionstone Development and Virgin Hotels, with JLL facilitating the deal. This transaction highlights the continued investor appetite for high-quality hospitality assets in major downtown markets. Despite the change in ownership, the hotel’s identity remains intact. Virgin Hotels confirmed that an affiliate will continue to manage the property, ensuring that the brand standards and innovative concepts that made it famous will remain in place.
Virgin Hotels Chicago is more than just a place to stay; it is a blueprint for how historic landmarks can be repurposed for the modern age. By marrying architectural heritage with tech-savvy solutions, the project has secured its place as a landmark in the Chicago hospitality scene, continuing to draw interest from travelers and industry pros alike.