Virgin Hotels has purchased the Old Dearborn Bank Building in downtown Chicago, US in an all-cash transaction.

Virgin Hotels will convert the former office building and expects to re-open it as Virgin Hotel Chicago by the end of 2013.

The 27-story Art Deco building, a Chicago landmark designed by C.W. and George L. Rapp Architects in 1928, has significant historic and architectural features that will be restored and recreated.

The new hotel will have 250 guest bedrooms and feature meeting spaces, restaurants, lounges and other public areas that reflect the Virgin brand.

Virgin Hotels was launched in September 2010 with plans to develop and operate gateway city hotels with 150 to 400 guest rooms, restaurants, and public spaces.

Anthony Marino, managing partner and head of Virgin Hotels, said: "This transaction is a first step towards our goal of building a portfolio of hotels that anticipate and respond to the needs of today's travelers and set a new standard for the industry."