A unit of Thor Equities will pay Hilton Hotels Corp. the money and then launch a $100 million renovation on the historic landmark, company officials said Wednesday.
Financing was arranged through Citigroup and Fillmore Capital Partners LLC.
The Palmer House was built by businessman Potter Palmer and opened on Sept. 26, 1871, 13 days before the notorious Great Chicago Fire destroyed it. Palmer built a new hotel across the street from the former building and opened in July 1873, the first hotel to be equipped with electric lights and telephones in each room.
In 1945 Conrad Hilton bought the property.
Besides presidential guests, notable visitors included Mark Twain, Buffalo Bill, Rudyard Kipling, Frank Sinatra, Judy Garland, Louis Armstrong, Maurice Chevalier, Bishop Desmond Tutu and the Dalai Lama.