Downtown Skokie Hotel Development Sees New Interest from Murphy Development Group

A long-stalled hotel project in downtown Skokie looks poised to move forward. A Chicago-based developer, Murphy Development Group, has emerged as the leading contender to revive the project. Located at 4930 Oakton Street, this development had attracted eight to ten interested parties, but Murphy Development Group is the first to present a formal design plan.

Village Attorney Rodney Lewis told Skokie trustees at their October 5 Board meeting, “The Murphy Group decided they wanted to take the lead and be the first to come to us with a proposal.” While Murphy Development Group is currently organizing estimated total costs, they need the village’s approval before proceeding.

Further work on this site has stalled since 2023. Contractor Russell Construction sued E&M Strategic Development, the hotel’s developer and owner, for not paying millions in project costs for the planned Homewood Suites by Hilton. Subsequently, lender X-Caliber Capital sued E&M in February 2025 for loan payment defaults.

Foreclosure ensued, leading to an arbitration panel hearing for all lienholders. Initially, the village was a defendant in the suit, but legal counsel successfully absolved the village from it, Lewis confirmed.

Following a recent hearing, the arbitration panel will decide on October 23 whether to extend a temporary stay or reschedule arbitration. Lewis stated, “We expect the arbitration panel to extend the stay, allowing more time to develop a beneficial solution for all parties.”

The village seeks proposals from developers who can complete the project while encouraging lienholders to reduce claims to attract developers. Village Manager John Lockerby noted Murphy Development’s prior work, having revived a nearby property, Highpoint at 8000 North.

Responding to Trustee Kimani Levy’s inquiry, Lewis confirmed that Murphy Development aims to continue the hotel concept originally intended at the site. Skokie Mayor Ann Tennes assured residents that regular updates on the hotel will continue, with the next one anticipated before year-end, depending on the arbitration outcome.