The US hospitality segment is seeing a dramatic makeover as Cloud One Hotels, a fast-rising affordable luxury chain operated by Germany’s Motel One Group, takes over the once-proposed Andaz building in River North, Chicago. The change in direction by the Porritt Group reflects a post-pandemic marketplace trending toward design-driven, cost-effective accommodations. The long-dormant 150 W. Hubbard Street hotel project, originally planned as a top-tier Hyatt Andaz, has been redefined as a 15-floor, 297-room high-rise with contemporary amenities, rooftop bar, and communal lounges designed for today’s urban traveler—part of a larger trend of adaptable, value-focused development redefining major US urban hubs.

Cloud One Hotels is poised to redefine the River North hotel landscape in Chicago as the Porritt Group revives its long-anticipated hospitality development at the corner of Hubbard and LaSalle Streets. After years of delays following the COVID-19 pandemic, shifting market conditions have prompted the developer to transition from the previously planned Hyatt Andaz to Cloud One, an emerging brand under Germany-based Motel One Group. The proposed 15-story hotel will introduce a fresh take on affordable luxury to downtown Chicago and signals renewed investment in the city’s post-pandemic tourism infrastructure.

A Revitalized Vision for 150 W. Hubbard Street

Porritt Group’s efforts to launch a major hotel project at 150 W. Hubbard Street date back several years, with the initial plan winning zoning approval as far back as 2016. Originally conceived as a Hyatt Andaz property with 341 rooms, the project faced a series of modifications and delays over the years, notably during the height of the COVID-19 pandemic. Now, in 2025, the project takes on a completely new shape with a 15-story tower housing 297 rooms under the Cloud One Hotels brand.

This transformation aligns with market trends favoring accessible yet high-quality lodging options as travelers seek value without sacrificing comfort and design. Porritt Group’s revised hotel plan features sleek guest accommodations alongside a spacious 3,800-square-foot restaurant at street level, a scenic rooftop bar overlooking the skyline, and versatile event spaces—curated to attract both visiting travelers and Chicago’s vibrant River North community.

Enter Cloud One Hotels: The Rise of Affordable Luxury

Cloud One Hotels, a relatively new entrant in the global hospitality sector, was launched in 2022 by Munich-based Motel One Group. Focused on delivering a “smart urban lifestyle” at competitive price points, Cloud One has quickly gained recognition in major European cities like Prague, Hamburg, Düsseldorf, and Gdańsk, as well as establishing a presence in New York City—the brand’s only current US location.

The addition of a Chicago outpost marks a significant expansion milestone for the brand, as well as a strategic play by Porritt Group to attract a new wave of modern travelers who value affordability coupled with design-forward amenities. The decision to pivot from the luxury-focused Andaz to Cloud One reflects a recalibration of the hospitality industry in response to post-pandemic travel behavior, favoring efficiency, digital integration, and experiential design.

Strategic Partnerships and Financial Momentum

Cloud One’s Chicago launch is backed by notable corporate momentum. In early 2024, Paris-based private equity firm PAI Partners acquired an 80 percent stake in Motel One’s operational business, a move that underscored confidence in the brand’s global potential. Motel One founder Dieter Müller continues to serve as chairman and strategic leader, focusing on international growth.

Previously, Motel One saw another significant transaction in 2023 when Proprium Capital Partners sold its 35 percent ownership for approximately $1.36 billion, placing the company’s overall valuation at $4.5 billion. These financial developments provide strong backing for the brand’s expansion into North America and reinforce investor confidence in the affordable luxury segment.

Cloud One’s Global Expansion Plans

As of the end of 2024, Motel One operated 99 hotels globally, with new locations planned for major international cities including Lisbon, Paris, Vienna, London, and Munich. The group’s ambitions are now clearly focused on bridging the Atlantic, with the Chicago River North project being a cornerstone of its US expansion strategy.

Chicago’s strategic location as a major travel hub and its diverse business and tourism ecosystem make it an ideal setting for Cloud One to build brand recognition in the American market. The River North district, known for its nightlife, restaurants, art galleries, and proximity to the Loop, offers the kind of urban context that matches Cloud One’s contemporary design ethos and millennial-minded traveler demographic.

Development Timeline and Design Vision

While the Porritt Group has not publicly disclosed a groundbreaking date, the firm’s website lists 2026 as the targeted completion year for the NORR-designed tower. The renderings present a sleek, modern structure that blends with the architectural rhythm of River North while standing out with minimalist European flair—a hallmark of Cloud One properties.

The proposed hotel tower will activate the street level with a dynamic 3,800-square-foot restaurant designed to cater to both hotel guests and River North residents. The inclusion of a rooftop bar and indoor event space is expected to drive additional engagement, hosting a mix of corporate gatherings, social events, and nightlife experiences.

Chicago’s Hotel Market in 2025: A Climate of Cautious Optimism

The decision to revise the hotel brand to Cloud One comes as Chicago’s hospitality market enters a phase of cautious optimism. Following a steep downturn during the pandemic, the city’s hotel occupancy rates and tourism numbers have steadily recovered. However, high construction costs, evolving travel preferences, and shifting demand patterns continue to influence project timelines and brand decisions.

Porritt Group’s move to an “affordable luxury” brand represents a pragmatic response to these market dynamics. Travelers in 2025 are increasingly cost-conscious, particularly younger demographics and business travelers seeking efficient yet comfortable stays with high design value. Cloud One’s emphasis on minimalist luxury, sustainable features, and tech-integrated guest experiences positions it well for success in this environment.

The Strategic Importance of River North

River North remains one of Chicago’s most desirable neighborhoods for hotel development due to its central location and vibrant mix of cultural, business, and entertainment assets. The district sits just north of the Loop—the city’s central business district—and is home to numerous offices, upscale apartments, art galleries, and culinary destinations.

With this hotel project, Cloud One Hotels will place itself at the intersection of tourism and urban lifestyle. The location is ideal for short-stay travelers, business professionals, and even locals seeking rooftop experiences or convenient meeting venues. Its design-forward concept aligns with River North’s architectural and cultural vibe.

A Broader Trend in Hotel Development

Cloud One’s entry into Chicago is not an isolated case but part of a wider trend of hospitality developers shifting focus from ultra-luxury to midscale, lifestyle-focused brands. These properties prioritize communal spaces, digital check-in, locally inspired food and beverage offerings, and sustainability—a response to the needs of a new generation of travelers.

Chicago’s market, in particular, has seen renewed interest in boutique and design-driven hotels that combine high aesthetic standards with functional simplicity. Brands like Moxy, CitizenM, and now Cloud One are finding fertile ground in city centers where guests demand both experience and economy.

A New Era for Hospitality in Chicago

The revised hotel project at 150 W. Hubbard Street signals a turning point for Chicago’s post-pandemic hospitality sector. With Cloud One Hotels stepping in as the new flag, Porritt Group is aligning its vision with current market demands and traveler expectations. The project not only breathes new life into a long-stalled site but also introduces a globally respected affordable luxury brand to one of America’s most dynamic urban neighborhoods.

Cloud One Hotels will take the place of the once-slated Andaz properties in Chicago’s River North, a dramatic turn in the direction of the US hospitality industry toward value-conscious luxury. It’s a response to shifting tourist tastes and the rebranding of a years-in-the-making hotel development with a contemporary, value-focused vision.

As the Chicago tourism and business landscape continues its upward trajectory, this development stands out as a timely and strategic addition. If completed on schedule in 2026, Cloud One Hotels’ River North location could become a defining property for both the brand’s US ambitions and Chicago’s next chapter in hospitality.

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