Draper and Kramer Arranges $54M Commercial Real Estate Financing for Westin Michigan Avenue Acquisition

CHICAGO — December 4, 2025 — Draper and Kramer, Incorporated announced that its Commercial Finance Group has closed a $54 million loan for Vinayaka Hospitality’s acquisition of the Westin Michigan Avenue, a 752-key full-service hotel located at 909 N. Michigan Ave. in Chicago.

Vinayaka Hospitality purchased the property for $72 million from a venture of Bethesda, Md.-based Pebblebrook Hotel Trust. The loan was arranged by Mark Perkowski, senior vice president with Draper and Kramer’s Commercial Finance Group, and provided by a life insurance company.

Commercial Real Estate Financing Details

The $54 million loan represents approximately 75% loan-to-value on the $72 million purchase price. Draper and Kramer stated that the financing provided the leverage, term and flexibility the borrower sought to improve the asset and maintain its position as one of Chicago’s premier lodging options.

“This iconic hotel, one of downtown’s largest and with a prime location along the famed Magnificent Mile, is the very definition of a trophy property — making it an incredible investment,” Perkowski said in the announcement. “And with Vinayaka Hospitality’s track record of successfully acquiring, improving, and managing similar full-service hotels, it was certainly an attractive lending opportunity.”

Market Context

According to Choose Chicago, hotels in the city’s Central Business District filled more than 3.56 million room nights during the summer of 2025, a 4.3% increase from 2024 and a new record for the city. The data reflects strong demand in Chicago’s hospitality sector.

Draper and Kramer’s Role

Draper and Kramer, a national full-service real estate firm, provides debt and equity placement services for acquisitions, recapitalizations, and new developments nationwide through its Commercial Finance Group.

Source: Draper and Kramer