At the same site as the first hotel, Francis Cornwall Sherman built a new structure, breaking ground on May 1, 1860, and opening the new structure to guests on July 1, 1861.[3] The structure was designed by William W. Boyington.[1] It became one of the city's grand hotels, alongside the Tremont House.[4] The front of the building was made of Athens marble on the levels above it storefronts.[1][3] Its primary entrance was along Clark street, with a two-story portico.[3] To the right of the main entrance was the building's ladies' entrance.[1] The building was 161 feet long along Randolph Street and 181 feet long along Clark Street.[2][1][3] The building had an open court in its center, and rose six stories.[1] There was a western section of the building along Couch Place that rose seven stories.[1] The building was designed in modern Italian style.[1]
Journalist James W. Sheahan wrote that the hotel's public spaces, including its Grand Hall, parlors, and reception rooms, "are not surpassed in size or general convenience by any similar hotel apartments in the country."[5]
The hotel was lost in the Great Chicago Fire in 1871.[6] Before the fire, the hotel was operated by George W. Gage.[7]