My wife and I traveled with our three elementary-school-aged children for Spring Break. We ended up at the Palomar because of the excellent "grand opening" rates which allowed us to book a suite rather than two separate rooms.
Simply put: we had a wonderful stay. From the bellman to the room service waiter, every member of the staff was exceedingly kind, courteous, and worked hard to please. Chic "boutique hotels" can be a bit intimidating for families, especially those with small children, but everyone made us feel like we were the "coolest" of their "cool" guests.
The suite room was spotless, hip-ly furnished, and huge. The similarly ample bath with marble shower and jetted soaking tub was fantastic. We ate breakfast at the hotel restaurant, and again, the staff was incredibly friendly and accommodating, especially our waiter. The food was excellent. We ate other meals out, as the hotel is located in the middle of some of the best restaurant territory in Chicago.
There were some "grand opening" glitches, that really do not merit mention. The fire extinguishers were still wore their the construction dust covers. Construction dust and dirt bubbled up in the soaking tub (at least I hope it was construction dust!) Room service brought meals without any silverware. There were no pillows or blankets for the kids' pull-out bed. All of these problems were quickly and efficiently remedied with a call to the reception desk.
All in all, we will definitely consider returning to the Palomar at our next opportunity.