The city is asking developers for proposals for a new hotel, and the renovation of an existing one, near Terminal 5. View Full Caption City of Chicago

O'HARE — The city's Department of Aviation is looking for developers to build a new hotel and renovate another near O'Hare Airport's Terminal 5, officials announced Wednesday.

The $350 million project — financed by taxes collected by the city from travelers and airlines — would add 1,250 jobs and generate millions of dollars in economic activity for the city of Chicago, a spokeswoman for Mayor Rahm Emanuel said when he first announced the project in June.

The hotels will "provide a significantly higher level of customer service and increased non-airline revenue," said Department of Aviation commissioner Ginger Evans, according to the Wednesday announcement.

Each prospective developer must submit a plan "demonstrating a commitment" to hire employees from "socio-economically disadvantaged areas throughout the city," the announcement read.

The new hotel would be next to Terminal 5, where international flights take off and land, and feature 300-400 rooms as well as 25,000-65,000 square feet of conference space, banquet rooms, ballrooms and other amenities, officials said.

Officials in June had also proposed a second new hotel, to be built on the northeast side of the airport along Mannheim Road near Irving Park Road. It would be part of a mixed-used development that would include 150-200 rooms and a business center and offices.

The hotels will be linked to the airport's terminals via O'Hare's 24-hour transit system, officials said.

City officials will ask firms to bid to renovate the O’Hare Hilton so it can accommodate large-scale trade shows and events. The city also wants new restaurants and boutiques to open at the iconic hotel.

The hotels are expected to welcome their first guests in 2020, officials said.

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