March 4, 2014 – A $5.25 million project should begin soon to turn the humble Tokyo Hotel on East Ohio Street into a hostel. (Left) Tokyo Hotel from across Ohio Street on January 26, 2014. (Click on image to view larger version.)

Less-affluent travelers will pay around $30 per night for a bed at the “Freehand,” part of a chain of hostels owned by Ronald Burkle, the billionaire Democratic fundraiser and co-owner of the Pittsburgh Penguins hockey team.

According to the construction permit issued on February 27, the hotel will be renovated inside and out and upgrades made to its mechanical, electrical, and plumbing systems.

Built in 1927, the 15-story building was designed by Ralph Harris, who specialized in Classical Revival, red brick, and terracotta. He also designed 1350 North Astor in Chicago’s Gold Coast neighborhood. Valerio Dewalt Train Associates, with an office on North Dearborn Street, is the architectural firm this time. The general contractor is Graycor Construction Company of Oakbrook Terrace, Illinois.

Burkle, who owns a residential building in Los Angeles that was designed by Frank Lloyd Wright, paid $13.5 million for the hotel, according to public records. The new 250-bed hostel will have a bar and café in the lobby. Construction will take about 18 months.