A long-stalled hotel development in downtown Skokie may soon proceed, as a Chicago-based developer shows keen interest in the project. Situated at 4930 Oakton Street, Murphy Development Group stands out among eight to ten interested developers. According to village attorney Rodney Lewis, Murphy has proactively submitted a formal design plan, demonstrating a strong intention to lead the venture.
Lewis informed Skokie trustees at their October 5 Board meeting about the situation. He emphasized that Murphy Development is not yet the chosen developer but is leading efforts to draft a concrete proposal. Before initiating the project, the group needs approval from the village.
Construction stopped in 2023, following a lawsuit from general contractor Russell Construction against E&M Strategic Development, the hotel’s developer. The conflict arose over unpaid millions linked to the planned Homewood Suites by Hilton hotel. In February 2025, lender X-Caliber Capital also sued E&M, citing default on a construction loan due to cost overruns. The development has been in foreclosure since then, with all lienholders recently attending an arbitration panel hearing.
Initially named as a defendant in the suit, the village managed to avoid responsibility through legal counsel efforts. Following a September hearing that required Russell Construction and E&M to submit a joint status report, the arbitration panel is expected to decide on October 23 whether to extend a temporary stay on the legal decision or reschedule arbitration.
Lewis expressed the expectation that the stay will be extended, allowing all involved parties to reach a beneficial resolution. The village actively seeks proposals from developers who can complete the project and negotiates with lien holders for more attractive terms.
Village Manager John Lockerby mentioned Murphy Development’s past work in Skokie, completing a similar project at Highpoint, 8000 North, a luxury apartment complex. Murphy Development’s current proposal aligns with the original hotel concept intended for the site.
Skokie Mayor Ann Tennes assured that the Board will keep residents informed on the hotel’s progress, with the next update expected by year-end. However, the timing hinges on the arbitration decision results set for October 23.
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