Northalsted will get its first hotel after the City Council approved plans March 12 for a rainbow-paneled hotel building replacing the former Yoshi’s Cafe.
The six-story hotel will be at 3255-57 N. Halsted St., replacing the two-story building that housed Yoshi’s Café, which closed in 2021, as well as an adjacent one-story building.

The hotel will have 51 rooms, as well as a rooftop pool, ground-floor restaurant and basement lounge bar, according to plans submitted to City Council. Designed by Chicago-based Jonathan Splitt Architects, the hotel will feature a series of colored panels that create a rainbow along its exterior. The pool, restaurant and bar will all be open to the general public.
The rooftop will have an inside lounge as well as an outdoor swimming pool and cabanas, according to plans. The pool area can be closed off in winter, so the space will be functional year-round.

The building will also have two onsite parking spaces, and developers are working to arrange for additional parking in nearby lots, according to plans.
Local Ald. Bennett Lawson (44th Ward) shared his support for the hotel during the March 11 Zoning Committee meeting, where he said the neighborhood hotel would serve as a pivotal economic engine for the Northalsted area.
“I have the top tourism neighborhood outside of Downtown, and no offense to my colleagues, I want them to spend their entire day in my ward—eat, sleep, drink [and] be entertained,” Lawson said. “You can do it all in 44, and especially here on Halsted.”
Lawson also praised the project for having local developers who have an intimate understanding of the neighborhood. They include Allan O’Brien, owner of the Men’s Room Chicago at 3343 N. Halsted St.; Andrias Campbell, a Northalsted neighbor; and Bob Sievers, who lives in Andersonville.
“Halsted has always been made up of local business owners, not some guys from L.A. or New York that come in and buy things up,” Lawson said. “These guys are here every day, and that makes a real difference [and] gives us a lot of confidence with a project like this.”
The developers have also signed onto a “Good Neighbor Agreement” reached with the community to address any concerns neighbors had with the project.
Parts of that agreement mandate that the restaurant and bar must close by 2 a.m. Sunday through Friday and by 3 a.m. on Saturday.

The outdoor rooftop amenities must close by 10 p.m. daily when the retractable roof is open, according to the agreement. When the retractable roof is closed, the rooftop amenities must close by 2 a.m. Sunday through Friday and 3 a.m. on Saturday.
The agreement also addresses concerns around noise control, traffic and parking, public safety and construction.
Lawson said the agreement, which was reached through several community meetings and other feedback processes, “gives everyone some confidence that if there’s any issues, we can all work together to solve them.”
O’Brien previously told Windy City Times the hotel’s construction could take about 18 months with the goal of opening in Summer 2027.
“We’re super excited about this project,” O’Brien previously told Windy City Times. “There’s a huge need in the community for people visiting Northalsted to have a place to stay that’s LGBTQ+-positive, and we’re trying to meet that.”
