The owner of the historic Palmer House Hilton has been sued for almost $338 million in missed loan payments, in the largest Chicago foreclosure case to emerge from the coronavirus pandemic.
New York-based owner Thor Equities was sued Aug. 20 in Cook County Circuit Court by Wells Fargo Bank. Thor Equities has missed monthly loan payments since April on the sprawling 1,641-room Loop hotel, and the $333.2 million loan hasn’t been paid off in full since it matured in June, the complaint alleges.
Thor’s unpaid debt is now higher than the value of the hotel, after an August appraisal valued the property at $305.5 million, according to research firm Trepp. That’s down from an estimated value of $560 million in 2018, when Thor refinanced the city’s second-largest hotel amid thriving Chicago tourism.
Including late fees and other costs, Thor owes more than $337.7 million, the lawsuit alleges.