Palmer House, a Hilton Hotel
A landmark Chicago hotel with origins in 1870, operated under the Hilton name and known for its historic architecture, hospitality legacy, and central Loop location.
Last updated October 14, 2026
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Overview
Palmer House, a Hilton Hotel is a landmark hotel in downtown Chicago's Loop, near the city's Theatre District. Its history begins with Potter Palmer, a prominent Chicago merchant and developer, who commissioned the first Palmer House as a wedding gift for his bride, Bertha Honoré. That original hotel opened in 1870 at State and Quincy Streets, but was destroyed by the Great Chicago Fire in October 1871. Palmer had already started building a replacement at State and Monroe Streets, allowing the hotel business to continue through a substantially larger second building. The second Palmer House opened in 1875 as a seven-story, 225-room hotel designed by John M. Van Osdel. It promoted itself as a fireproof hotel and became known for unusually spacious rooms, elaborate decoration, high-end food, and a level of technological convenience that helped define modern urban hospitality. The hotel was associated with several early Chicago innovations: the Palmer House is credited with being among the city's first hotels to use elevators, electric lighting, and telephones in guest rooms. Its public spaces and dining rooms made it a prominent setting for political, literary, academic, and entertainment activity. A 1895 meeting of university representatives at the hotel contributed to the creation of the Big Ten Conference. The hotel's culinary history also includes the creation of the chocolate brownie for the 1893 World's Columbian Exposition. By the early twentieth century, Chicago's expanding economy, population, railway connections, and convention business had outgrown the capacity of many existing hotels. The Palmer estate responded by commissioning a much larger building from Holabird & Roche. Constructed between 1923 and 1925 on the established Palmer House site, the 25-story third building opened with 2,268 rooms and was briefly the world's largest hotel by room count. Its scale, grand lobby, ballrooms, and central location made it a major institution in Chicago's commercial and social life. Conrad Hilton acquired the property in December 1945, and it became known as the Palmer House Hilton. Over subsequent decades, the hotel developed a strong connection with live entertainment, particularly through its Empire Room, where performers including Frank Sinatra, Judy Garland, Liberace, Ella Fitzgerald, Nat King Cole, Louis Armstrong, Sammy Davis Jr., Tony Bennett, Liza Minnelli, and many other artists appeared. The venue helped position the hotel as more than an accommodation business: it was also a destination for nightlife, events, conventions, and public performances. Hilton sold the property to Thor Equities in 2005 while retaining management through the Hilton system. Between 2007 and 2009, the building underwent a major renovation and restoration led by Loebl Schlossman & Hackl and David Fleener Architects. The project reportedly cost more than $170 million and combined restoration of historic character with updates to guest rooms and public facilities. After the work, the hotel operated with 1,639 guest rooms, making it one of Chicago's largest hotels. The property closed in March 2020 during the COVID-19 pandemic, interrupting claims that it had been North America's longest continuously operating hotel. During the closure, Wells Fargo filed a lawsuit in August 2020 against Thor Equities concerning an alleged default on a $333 million commercial mortgage. The hotel reopened on June 17, 2021, after additional interior improvements, including work on its indoor pool. It remains an operating historic hotel under the Palmer House, a Hilton Hotel name and is included in the Historic Hotels of America program of the National Trust for Historic Preservation.
History
The Palmer House's institutional history is closely tied to the growth and rebuilding of Chicago. Potter Palmer opened the first hotel bearing the name on September 26, 1870, at State and Quincy Streets. Conceived in part as a wedding gift to Bertha Honoré, it represented the ambition of post-Civil War Chicago's expanding commercial elite. The building lasted only about a year before the Great Chicago Fire destroyed it on October 9, 1871. Palmer had begun construction of a replacement hotel at State and Monroe Streets before the fire. The second Palmer House was completed in 1875 as a seven-story, 225-room building designed by John M. Van Osdel. Its oversized rooms, elaborate decoration, large-scale dining service, and highly publicized fire-resistant construction made it a leading example of late nineteenth-century urban hospitality. The hotel also adopted technologies that were still unusual in Chicago hotels, including elevators, electric lighting, and telephones in guest rooms. Its barber shop, with silver dollars set into the tiled floor in a diamond pattern, became one of the details associated with its opulent image. The second hotel attracted politicians, writers, performers, and other prominent visitors. It also became a site for institutional and cultural gatherings. Representatives of Midwestern universities met there in 1895, a gathering associated with the founding of the Big Ten Conference. The hotel's culinary lore includes the development of the chocolate brownie in connection with the World's Columbian Exposition of 1893. Chicago's growth eventually created demand for a far larger hotel. During the 1920s, business travel and conventions expanded while available hotel capacity lagged behind demand. The Palmer estate commissioned Holabird & Roche to design a 25-story replacement. Built between 1923 and 1925 on the same site, the third Palmer House opened with 2,268 rooms and was briefly the largest hotel in the world by room count. Its scale and central location made it a major part of Chicago's Loop hospitality infrastructure. Conrad Hilton purchased the hotel in December 1945, after which it became the Palmer House Hilton. The property developed a particularly strong entertainment identity through the Empire Room, which hosted a long succession of singers, comedians, dancers, and stage performers. The hotel consequently served simultaneously as a lodging property, convention venue, dining destination, and entertainment address. In 2005, Hilton sold the property to Thor Equities but kept responsibility for management through the Hilton chain. A substantial restoration and modernization project took place from 2007 to 2009 under Loebl Schlossman & Hackl and David Fleener Architects. The work reportedly exceeded $170 million and restored or upgraded historic and operational elements while reducing the room count to 1,639. The hotel temporarily closed in March 2020 during the COVID-19 pandemic. That interruption qualified the claim that the Palmer House had been North America's longest continuously operating hotel. During the closure, Wells Fargo brought a lawsuit against Thor Equities in connection with an alleged $333 million commercial mortgage default. The property reopened on June 17, 2021, after further interior improvements, including renovation of its indoor pool. It continues to operate in Chicago under the Palmer House, a Hilton Hotel name and belongs to the Historic Hotels of America program.
- 2021
Hotel reopens
[1]Palmer House reopens on June 17 after interior upgrades, including work on its indoor pool.
- 2021
Reopening after upgrades
[1]The hotel reopens on June 17 following interior improvements, including work on the indoor pool.
- 2020
Hotel closes during the pandemic
[1]The property closes in March because of the COVID-19 pandemic.
- 2020
Temporary pandemic closure
[1]The hotel closes in March because of the COVID-19 pandemic.
- 2009
Major restoration and modernization completed
[1]A renovation begun in 2007 is completed, updating and restoring the hotel at a reported cost exceeding $170 million and leaving 1,639 guest rooms. A renovation and restoration undertaken from 2007 to 2009 modernizes the property while preserving its historic character.
- 2005
Property sold to Thor Equities
[1]Hilton sells the property to Thor Equities while retaining hotel management through the Hilton chain.
- 1945
Conrad Hilton acquires the hotel
[1]Conrad Hilton purchases the property in December, bringing it into the Hilton organization. Hilton purchases the property in December for $20 million, establishing the Palmer House Hilton identity.
- 1925
Present hotel building opens
[1]The third Palmer House, a 25-story Holabird & Roche building constructed between 1923 and 1925, opens with 2,268 rooms.
- 1895
Meeting linked to the founding of the Big Ten Conference
[1]Faculty representatives from Midwestern universities meet at the hotel in a gathering associated with the founding of the Big Ten Conference.
- 1893
Chocolate brownie associated with the hotel
[1]The hotel is associated with the creation of the chocolate brownie for the World's Columbian Exposition.
Products and positioning
Historic full-service luxury hotel combining landmark architecture, large-scale convention and event capacity, downtown Chicago access, and Hilton-branded hospitality.
Hotel accommodation
Guest rooms and suites
The hotel's core offering is full-service accommodation in a landmark downtown Chicago building. The present property has operated with 1,639 guest rooms following its major restoration and modernization program, making it one of the city's largest hotels and serving leisure travelers, business visitors, convention attendees, and guests seeking a historic downtown setting. The hotel's principal offering is full-service accommodation in a landmark Chicago Loop building. The property had 1,639 guest rooms after its major renovation, serving leisure travelers, business visitors, convention attendees, and guests seeking a historic downtown setting.
Meetings and events
Ballrooms and event facilities
Palmer House provides historic ballrooms and other event spaces for conventions, banquets, weddings, corporate meetings, and social functions. Its scale and Loop location have supported the hotel's long-standing role in Chicago's convention and hospitality economy.
Food and beverage · 1870
Dining and banquet services
Dining, banquet, and catering services form an important part of the hotel's full-service proposition. The property has historically emphasized elaborate meals and formal public spaces, while its modern operations support guest dining and private events.
Entertainment
Empire Room entertainment venue
The Empire Room was a major entertainment space associated with the hotel. Over the twentieth century it hosted prominent performers across popular music, jazz, comedy, and stage entertainment, strengthening Palmer House's reputation as a cultural and nightlife destination.
Recreation · 2021
Indoor pool and leisure facilities
The hotel includes leisure facilities such as an indoor pool for overnight guests. The pool was among the areas receiving renovation work before the property's reopening after its 2020-2021 pandemic closure.
Hospitality and events
Meetings, conventions, and events
Large-scale meeting rooms, ballrooms, banquet areas, and catering services support conventions, corporate functions, weddings, and social events. This role reflects Chicago's long-standing position as a major business and convention destination.
Food, beverage, and entertainment
Dining and entertainment venues
Dining and beverage services form part of the hotel's full-service proposition. Historically, the Empire Room also gave the property a prominent entertainment identity, hosting major singers, actors, comedians, and orchestral performers.
Controversies
2020
Mortgage-default litigation involving property owner
Wells Fargo filed suit against Thor Equities in August 2020, alleging that the owner had defaulted on a $333 million commercial mortgage connected with the Palmer House. The litigation occurred while the hotel was closed because of the COVID-19 pandemic.
Brand decisions
2021
Reopening after pandemic closureStrategyBackground
The hotel had been closed since March 2020 because of the COVID-19 pandemic.
Action taken
The property reopened on June 17, 2021, after interior upgrades including renovation of the indoor pool.
Aftermath
The property resumed operations as a Hilton-managed historic hotel in downtown Chicago. The reopening restored hotel operations after the temporary pandemic shutdown.
2009
Historic restoration and modernizationStrategyBackground
The large landmark hotel required modernization while retaining architectural and historical features important to its identity.
Action taken
Loebl Schlossman & Hackl and David Fleener Architects led a renovation and restoration program conducted from 2007 through 2009.
Aftermath
The property emerged with updated guest facilities and 1,639 rooms while continuing to trade on its historic character.
Renovation cost. More than $170 million (2007-2009)
2007
Historic restoration and modernizationStrategyBackground
The landmark hotel required substantial renewal while preserving its historic architectural identity.
Action taken
Loebl Schlossman & Hackl and David Fleener Architects undertook a comprehensive renovation and restoration program.
Aftermath
The project was completed in 2009 and left the hotel operating with 1,639 guest rooms and upgraded public and guest facilities.
Reported renovation cost. $170 million or more (2007-2009)
2005
Sale to Thor Equities with Hilton management retainedM&ABackground
Hilton changed the property's ownership structure while preserving its role as the operating hotel brand.
Action taken
Hilton sold the property to Thor Equities but continued to manage it through the Hilton chain.
Aftermath
The property continued operating under the Hilton system despite the change in ownership. Ownership and brand management became separate, with Thor Equities holding the property and Hilton continuing hotel operations.
1945
Hilton acquisition of Palmer HouseM&ABackground
The historic Chicago hotel was acquired by Conrad Hilton as the property entered a new phase under the Hilton organization.
Action taken
Conrad Hilton purchased the property in December 1945, after which it became known as the Palmer House Hilton.
Aftermath
The hotel became part of the Hilton operating network and retained a Hilton identity for subsequent decades.
Acquisition price. $20 million (December 1945)
1923
Construction of the third Palmer HouseGeneration changeBackground
Chicago's economic expansion and convention demand had created a need for much greater hotel capacity than the second Palmer House could provide.
Action taken
The Palmer estate commissioned Holabird & Roche to design a 25-story replacement on the established site.
Aftermath
The building opened in 1925 with 2,268 rooms and briefly ranked as the world's largest hotel by room count.
Sources1 sources
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