October 2, 2026 — The prominent boutique hotel at 505 North State Street has changed hands, prompting an abrupt name change and marking the downtown entry of an international lodging developer.
Toronto-based Manga Hotel Group has acquired the 261-room property formerly known as The Royal Sonesta Chicago River North. Exterior signage bearing the Sonesta name was removed this week, replaced by discreet branding of the property as Hotel 505 River North.
Manga confirmed the purchase to Connect CRE, noting that the property will operate under the interim Hotel 505 moniker until it can be fully converted and repositioned under its lifestyle boutique flag, the TOOR Hotel brand.
The purchase price was not disclosed by the parties and was not immediately available in public records. The property last traded for $54.5 million in 2019 when Massachusetts-based real estate investment trust Service Properties Trust (SVC) restructured its portfolio.
Built in 2010, the hotel occupies the lower 17 floors of the 36-story tower, which also houses residential apartments above. The property originally opened as the Kimpton Hotel Palomar Chicago before abruptly shifting to the Royal Sonesta banner in late 2020 amid a portfolio-wide dispute between SVC and InterContinental Hotels Group. The hotel features more than 8,000 square feet of meeting and event space spread across ten rooms, a 17th-floor indoor heated lap pool with an outdoor sundeck, a fitness center, and ground-floor dining space along State Street.
The River North purchase continues an aggressive U.S. expansion strategy for Manga. The hospitality group acquired the SoHo 54 Hotel in New York in 2025 and followed with the 158-room Chelsean New York Hotel earlier this year for a reported $50 million.
The hotel transition also comes at a quiet time on the local labor front. While 46 downtown Chicago hotels are facing potential strikes following an 85 percent walkout authorization by UNITE HERE Local 1, 505 North State is not on the union’s list of potential strike locations due to an earlier, separate contract cycle under prior management.
A timeline for exterior renovation work and permanent TOOR rebranding has not yet been announced.
