Virgin Hotels has confirmed the purchase of the Old Dearborn Bank Building in downtown Chicago in an all-cash transaction.

Virgin Hotels will convert the former office building and expects to re-open it as Virgin Hotel Chicago in the fall of 2013.

The 27-story Art Deco building, a Chicago landmark designed by C.W. and George L. Rapp Architects in 1928, has significant historic and architectural features that will be restored and recreated.

Located at 203 N. Wabash Avenue, at the corner of Wabash and Lake, the property is in the heart of Chicago’s Loop.

The new hotel will have 250 guest rooms and feature meeting spaces, restaurants, lounges and other public areas that reflect the Virgin brand’s stylish and functional legacy.

“This transaction is a first step towards our goal of building a portfolio of hotels that anticipate and respond to the needs of today’s travellers and set a new standard for the industry,” said Anthony Marino, head of Virgin Hotels.

“The Virgin Hotels team is focused on finding the best locations and strongest partners to bring Virgin’s product vision to life for our 60 million customers around the world.”

Virgin Hotels has selected The John Buck Company to execute the redevelopment of the iconic Dearborn Bank Building.

Marino said: “The John Buck Company offers a unique blend of local knowledge, global perspective and strong execution, a combination we’re looking for in partners for our other locations.”

Virgin Hotels has an active pipeline of properties in gateway cities, including Los Angeles, Miami, New York, San Francisco, Washington DC, and London, locations where Virgin Hotels is pursuing hotel and office conversions, as well as ground-up development.

“As a result of our anticipated development growth, it is highly likely that one or more Virgin Hotels will open before Virgin Hotel Chicago,” concluded Marino.