Two New Hotels Planned for Chicago's Northalsted District

Tryst Hospitality and Backbeat Hotel developments aim to bring luxury and nightlife to the LGBTQ+ neighborhood.

Published on Feb. 25, 2026

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The Northalsted district of Chicago, previously known as Boystown, is set to see two new hotel developments in the coming years. Tryst Hospitality has announced plans for a 21-room boutique hotel with a restaurant, nightclub, and rooftop pool, while the Backbeat Hotel, a 50-room independent boutique hotel, is also in the works for the neighborhood.

Why it matters

The Northalsted district is a hub of LGBTQ+ nightlife and culture in Chicago, and these new hotel developments aim to cater to both locals and travelers looking to experience the energy of the neighborhood. The projects also highlight the ongoing transformation and gentrification of the area, as longtime businesses like D.S. Tequila make way for new luxury developments.

The details

Tryst Hospitality's planned hotel at 3350-3352 N. Halsted St. will involve the demolition of the former D.S. Tequila building, which closed in 2023 after 14 years in business. The new five-story, 21-room boutique hotel will feature a restaurant, nightclub, and an enclosed rooftop with a pool and bar. Meanwhile, the Backbeat Hotel, a 50-room independent boutique hotel, is set to be constructed at 3255 N. Halsted St. on the site of the former Yoshi's Café, which closed in 2021 after nearly 40 years. The Backbeat Hotel will include a rooftop pool and deck, a full-service restaurant, and a luxury lounge.

  • Tryst Hospitality has submitted plans to the City of Chicago and launched community meetings, but a projected opening date was not specified.
  • Demolition of the old Yoshi's Café building for the Backbeat Hotel is set to begin this summer, with 18 months of construction to follow, targeting a 2028 opening.

The players

Tryst Hospitality

A hospitality company that operates boutique hotels, including properties in Puerto Vallarta, Mexico, and San Juan, Puerto Rico. Tryst Hospitality has owned the 3350-3352 N. Halsted St. property since 2024 and plans to open a new boutique gay luxury hotel there.

Tristan Schukraft

The founder and chief executive officer of Tryst Hospitality.

Backbeat Hotel

A 50-room independent boutique hotel planned for 3255 N. Halsted St., honoring Chicago's house music legacy.

Allan O'Brien

The owner of Men's Room Chicago, a fashion store in the Northalsted district, and the developer of the Backbeat Hotel.

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What they’re saying

“Northalsted is one of the most dynamic queer villages in the world, and it deserves a luxury gay hotel that matches its energy. We want to give people a reason to stay in the neighborhood, not just pass through it, creating a space that belongs to locals, welcomes travelers, and becomes a new hub for gay culture and nightlife.”

— Tristan Schukraft, Founder and Chief Executive Officer, Tryst Hospitality (GlobeNewswire)

What’s next

Tryst Hospitality has submitted plans to the City of Chicago and is holding community meetings, while demolition of the old Yoshi's Café building for the Backbeat Hotel is set to begin this summer, with 18 months of construction to follow.

The takeaway

The planned hotel developments in Chicago's Northalsted district highlight the ongoing transformation of the LGBTQ+ neighborhood, as new luxury accommodations and nightlife options aim to attract both locals and travelers to the area. However, the projects also raise questions about the impact of gentrification on the character and affordability of the community.