Early years The hotel and the adjacent
Blackstone Theatre were built on the former site of railroad millionaire Timothy Blackstone's mansion in 1908. The owners were brothers
John and
Tracy Drake, sons of Blackstone's former business partner, the hotel magnate
John Drake. John and Tracy Drake also developed the luxury
Drake Hotel. At the time of the opening, the hotel and theatre were located at the southern edge of the Chicago Theatre District at Michigan Avenue and Hubbard Court (which was first renamed 7th Street and later Balbo Drive). The hotel opened on April 6, 1910. Its namesake,
Timothy Blackstone, was a notable Chicago business executive and politician, who served as the founding president of the
Union Stock Yards, president of the
Chicago and Alton Railroad, and
mayor of
La Salle, Illinois. Built from 1908 to 1910, it was designed by
Marshall and Fox. The original construction was capitalized at $1.5 million (equivalent to $ in ), including a $600,000 to $750,000 bond issue by the Drake Hotel Company.
Later years In the 1920s, the Drake Hotel Company undertook some financing arrangements which included extending their debt to construct the Drake Hotel. They used the Blackstone Hotel as collateral for one loan in 1927. The
Wall Street Crash of 1929 rippled into the hotel industry, leaving the Chicago Title and Trust Company with 30 Chicago hotels in receivership and causing the Drakes to default in 1932. The hotel ended up belonging to
Metropolitan Life, which held the mortgage. MetLife leased the Blackstone to hotelier
Arnold Kirkeby in 1936, and Kirkeby bought the hotel outright in 1941. (equivalent to $ in ), and the hotel became the Blackstone Hotel again. In 1995, the Blackstone was sold to the
Maharishi Mahesh Yogi. 1995 was also the end of
Jazz Showcase's 14-year run at the hotel. On May 29, 1998, the Blackstone Hotel was designated as a
Chicago Landmark. The hotel was added to the
National Register of Historic Places on May 8, 1986. It is also a historic district contributing property for the Chicago Landmark
Historic Michigan Boulevard District.
Closure The hotel closed in 2000, after
Occupational Safety and Health Administration building inspectors found safety problems during a 1999 inspection. The building's owner, Heaven on Earth Inns Corp, run by
Maharishi Mahesh Yogi, looked into several options before selling the property to Rubloff, Inc., which in 2001 announced plans to convert the building into
condominiums priced as high as $8.5 million (equivalent to $ in ). Rubloff's plans were unsuccessful due to financing difficulties and a lackluster market for buyers of Blackstone condominiums. Even two rounds of price cuts were not enough to spur interest in the condo opportunities and Maharishi Mahesh Yogi's
non-profit organization was unable to obtain financing. Sage had been interested in the property long before the condominium conversion was attempted. They eventually were approved for $18 million in tax-increment financing. The other parties involved in the restoration were local architect
Lucien Lagrange and hotel interior design, development, and procurement firm Gettys, for design work. The restoration resulted in 332 rooms, 12 suites, and of meeting space. The 21-story hotel is now equipped with a health club, a business center, and a street-level cafe with outdoor seating area. As part of the restorations,
sconces and
chandeliers were restored. Only two guest rooms were preserved during the restoration: the famous ninth-floor "smoke-filled room" and the original tenth-floor presidential suite. They both retained their original floors, fireplaces, and structural shapes. However, the Presidential Suite's famed
hidden passage behind the fireplace—which allowed the president to exit through the hotel's eastern
stairwell unnoticed—has been converted into closet space. The Blackstone was transferred from Marriott's Renaissance Hotels division to their Autograph Hotels division and returned to its historic name,
The Blackstone Hotel. The transition included a renovation to update the look of the hotel with a historic meets-contemporary-feel by revitalizing the soft goods of the guest rooms, meeting spaces and lobby. The hotel formerly featured a bar in the lobby called Timothy's Hutch, paying homage to the hotel's namesake, Timothy Blackstone. == Hotel and politics ==