A long-dormant hotel development in downtown Skokie has the potential to gain traction, with a Chicago-based developer stepping forward to tackle the stalled project. Of the numerous developers showing interest in the site located at 4930 Oakton Street, Murphy Development Group has submitted a formal design plan, making them the foremost candidate, according to village attorney Rodney Lewis.
Murphy Development Group took decisive action, expressing their intention to lead the project by submitting proposal ideas at the Oct. 5 Board meeting with Skokie trustees. Lewis clarified that, while not officially chosen yet, Murphy Development is taking the lead in presenting a detailed proposal.
The project, previously stalled due to litigation and financial disputes, involves constructing the Homewood Suites by Hilton hotel. The project’s legal issues began in 2023, when Russell Construction sued developer E&M Strategic Development over unpaid project costs. The lender, X-Caliber Capital, also sued E&M Strategic Development in 2025, alleging default on the construction loan due to cost overruns.
Since then, the development has been in foreclosure, with arbitration hearings held to involve all lienholders, as confirmed by Lewis. Skokie was initially named as a defendant but has since been absolved of responsibility due to its legal team’s efforts.
Lewis updated Board members on Oct. 5, 2026, about Murphy Development Group’s status as the leading interested party, following a September hearing. An arbitration panel will decide whether to issue a temporary stay or reschedule the matter on Oct. 23, allowing more time for resolution and beneficial outcomes.
Lewis emphasized the village’s efforts to attract developers capable of completing the project and negotiating with lienholders to make the opportunity more appealing. Murphy Development has prior experience in Skokie, completing the Highpoint at 8000 North apartment complex nearby, which was similarly unfinished.
Trustee Kimani Levy inquired if Murphy Development intends to continue the original hotel concept. Lewis confirmed that the plan remains focused on developing the hotel.
Mayor Ann Tennes stated that the Board will regularly update residents on the project’s progress, with the next update expected before year’s end, contingent upon the Oct. 23 arbitration ruling.