The south loop has always been the asshole of Chicago proper. Niggers and homeless have always roamed that part of Chicago for generations; they've been gentrifying that area for maybe as long as twenty years and it's actually worse because of the overt lawlessness and feral nature of hominids.
1938 Area Description from the federal Home Owners' Loan Corporation.
Description and Characteristics of Area ...a blighted area, 100 per cent negro, predominantly apartment buildings; 3's, 6's and up, few 2's. Single homes are of the 6-10 room type, average age 40 years.
In this area under construction is the Ida B. Wells US Housing Project, extending from 37th to 39th between South Parkway and Cottage Grove. This project is expected to house 1,662 negro families and, of course, will be taken off the tax rolls with the exception of taxes for police, fire and school purposes.
This venture has the realtors guessing as to what the ultimate result will be when so many of this race are drawn into this section from the already negro-blighted district; particularly its effect on the section east and south of Cottage Grove, and to park and water frontage on Lake Michigan. Already Washington Park at the south, a very fine park, has been almost completely monopolized by the colored race. Criticism is heard of the location of the project, some believing it should have been located north of Oakwood and west of Indiana in order to keep the colored influence as far as possible from further encroaching on park and lake water frontage.
This isn't the exact area of the hotel but is fairly representative of the entire south side.
More descriptions here: https://dsl.richmond.edu/panorama/redlining/map/IL/Chicago/context#loc=11/41.8248/-87.6513