Airport Hotel Trades Hands in Chicago’s O’Hare Submarket
- Mar 26, 2015
Hospitality Properties Trust, of Newton, Mass., has purchased the 300-key Holiday Inn & Suites Rosemont, near Chicago’s O’Hare International Airport, from Rockbridge, it was announced Wednesday by JLL’s Hotels & Hospitality Group, which represented the seller.
The sale price was not released, but according to an SEC Form 10-K filed on Feb. 27, HPT had at that time recently agreed to acquire the Rosemont hotel for $35.5 million, financed through “cash on hand and borrowings under our revolving credit facility.”
The sale closed March 16, a JLL spokesperson told Commercial Property Executive.
The hotel features about 3,100 square feet of flexible meeting space, 406 parking spaces, a fitness center and the leased 8,000-square-foot Harry Caray’s Italian Steakhouse.
Going forward, Intercontinental Hotels Group will manage the property.
“Strong growth in operating fundamentals among airport hotels and a prime location near one of the world’s busiest airports drove the sale,” according to the JLL announcement.
Managing director Adam McGaughy, senior vice president John Nugent and vice president Truitt Alday led the JLL team.
“The Holiday Inn & Suites Rosemont is a well-positioned asset that boasts strong cash flow, which helped JLL attract a strong institutional base of buyer groups to our marketing process,” McGaughy said in the release.
The O’Hare hospitality submarket seems to be recovering strongly, according to figures from Smith Travel Research provided to CPE by JLL. On a base of about 2.83 million room-nights, the submarket has seen average occupancy climb from 71.3 percent in 2012 to 77.1 percent in 2014. Over the same period, the average daily rate increased from $118.63 to $128.37 and RevPAR rose by 11.6 percent, from $84.60 to $99.01.