By Sharon Fountain
A long-vacant historic hotel in Chicago’s Pullman community — the Historic Florence Hotel Chicago — is poised for a new life as a boutique destination hotel and event venue, marking the latest step in a wave of economic development that local leaders say is transforming the Far South Side.
The redevelopment is part of a public-private partnership announced by Illinois Governor JB Pritzker that will leverage $21 million in state capital funding to unlock more than $83 million in private investment, bringing the total project value to more than $100 million.
Ninth Ward Alderman Anthony Beale said the redevelopment reflects years of work to attract investment to the Far South Side while preserving Pullman’s historic character and creating long-term economic opportunities for residents.
“This project is about bringing new life to a historic landmark while creating jobs, attracting visitors and continuing the momentum of development we’ve been building in Pullman,” Beale said. “For many years we’ve talked about the potential of Pullman, and now we’re seeing that potential turn into real investment and real opportunities for the people who live here.”
“Pullman is a treasured piece of Illinois’ story, and with this public-private partnership, we’re breathing new life into an incredible site through significant capital improvements,” Pritzker said in announcing the project. “This investment is a chance to reinvest in our community and give a boost to local residents, workers and small businesses — all while allowing new generations of visitors to learn about Pullman’s rich history.”
The development team, led by Scott Henry of Celadon Construction Corp., is working in partnership with the Illinois Department of Natural Resources to restore the historic hotel and several surrounding buildings within the Pullman State Historic Site.
The project will restore the 1881 Hotel Florence, its annex, portions of the Pullman Car Works building and surrounding historic grounds, transforming the site into a boutique hotel, dining destination and cultural and performing arts hub designed to support tourism and community programming.
The redevelopment represents another major investment in Pullman, which has undergone significant economic change over the past decade as public and private partners have worked to revive the historic community.
“This is a continuation of the renaissance of the Pullman and Roseland community,” Beale said. “We have worked for years to bring responsible development into the Ninth Ward, and projects like this show that the Far South Side is attracting serious investment and attention.”
The Florence Hotel dates back to the late nineteenth century, when Pullman was one of the nation’s most prominent industrial company towns built around the Pullman railcar manufacturing complex. The hotel originally served visiting dignitaries and business travelers connected to the railcar works and surrounding industrial operations.
Plans for the redevelopment call for the building to be transformed into a boutique hotel with approximately 50 guest rooms, along with a full-service restaurant and event space designed to attract visitors to the Pullman historic district.
Beale said the vision for the redevelopment also includes creating a destination dining experience within the historic district.
“We want people to come to Pullman not just to see the history but to stay, dine and experience everything the community has to offer,” Beale said. “Having a quality hotel and a high-end restaurant here will help position Pullman as a destination on Chicago’s South Side.”
Redeveloping the landmark structure will require extensive interior modifications while preserving the building’s historic architectural character. When the hotel first opened more than a century ago, guest rooms shared communal bathrooms on each floor, which was typical for hotels of that era. The renovation will reconfigure the floor plans to include private bathrooms and modern amenities in each guest room while maintaining the building’s historic appearance.
Supporters of the project say the completed hotel could become a destination venue on Chicago’s South Side, offering accommodations for visitors exploring Pullman National Historical Park while also providing space for weddings, conferences and community events.
The project is being announced at a time when Pullman and surrounding Far South Side neighborhoods are experiencing renewed economic investment. A recent economic impact study found that $693 million invested in Pullman, Roseland, West Pullman and Riverdale between 2010 and 2023 generated approximately $1.46 billion in economic impact and helped create thousands of jobs across the Far South Side.
Researchers found the investment activity contributed to a significant improvement in economic conditions in Pullman, where the unemployment rate dropped from 21 percent to 13.2 percent during the study period. Median household income increased by 48 percent in Pullman and nearly 30 percent across the broader Far South Side communities included in the analysis.
Home values in Pullman also rose by 27 percent during that time, increasing from $139,037 to $176,586, while the number of quality affordable housing units increased by more than four percent.
Economic development leaders say those improvements are tied to strategic investments in manufacturing, retail, housing and community services that have gradually reshaped the once-declining industrial corridor. Independent research examining redevelopment activity in the Pullman area has also found that more than $700 million in public and private investment over the past decade helped generate more than 6,000 jobs through a series of residential, commercial and small-business development projects.
Developments such as Pullman Park transformed a long-vacant steel site into a complex that now includes manufacturing operations, retail stores, restaurants and distribution facilities.
Community investment efforts have also supported minority entrepreneurs and small businesses through financing programs designed to expand economic opportunity on Chicago’s South and West sides.
The hotel redevelopment comes as another major housing project championed by Beale moves forward in the Ninth Ward. The Indian Trails Apartments complex, which had suffered years of deterioration, is currently undergoing a major renovation that includes upgraded units, improved building systems and new community amenities.
Officials say the rehabilitation is being carried out while allowing residents to remain in their homes during the renovation process, an approach intended to improve housing conditions without displacing tenants.
Supporters of the Pullman hotel project say it could further strengthen the community’s growing tourism economy. Pullman National Historical Park, which traces the neighborhood’s role in industrial history and the early labor movement, continues to attract visitors from across the country.
The Pullman Historic District also holds a significant place in Black labor history as the home of the Brotherhood of Sleeping Car Porters — the first Black labor union recognized by a major U.S. corporation and a milestone in the fight for fair wages and worker protections nationwide.
Community leaders say the lack of nearby hotel accommodations has limited the area’s ability to host larger tourism events and overnight visitors. The Florence Hotel restoration is expected to help address that gap while bringing additional economic activity to local restaurants, businesses and cultural institutions.
The Florence Hotel redevelopment will also be complemented by another hospitality project planned for the community. Construction is expected to begin this spring on a new Hampton by Hilton hotel with approximately 101 rooms, which would become the first newly constructed hotel south of Hyde Park in more than four decades.
The agreement for the Florence Hotel redevelopment includes a 75-year partnership structure intended to ensure long-term preservation, management and operation of the historic site. State officials say the initiative represents the first major public-private partnership undertaken by the Illinois Department of Natural Resources for the redevelopment of a historic site.
Together, the projects signal a broader strategy to position Pullman as a destination for tourism, culture and economic investment on Chicago’s Far South Side.
For many residents and development leaders, the project represents both the preservation of an important historic structure and another sign that long-promised investment in the Far South Side is continuing to take shape.