Renaissance Chicago North Shore Changes Hands
The new owners of a Northbrook hotel have big plans for their asset.
An affiliate of Nath Cos. acquired the 385-room Renaissance Chicago North Shore hotel from HI TRS, a subsidiary of USAA Real Estate. Terms of the deal were not disclosed. Savills Studley Managing Director Tom Baker, who repped the seller with Executive Vice President Joe Learner, said Renaissance Chicago North Shore was in need of capital investment and no longer consistent with its investment objectives. USAA had spent $11M between 2011 and 2014 upgrading the hotel’s boilers and mechanical systems. Marriott, which owns the Renaissance brand, wanted a refresh of the guest rooms, and USAA had to decide whether to put in more money or find a buyer.
USAA still had time remaining on its franchise agreement and a new owner would have to assume the agreement. Enter Nath Cos., which has hotels in its portfolio but none under the Marriott corporate banner. Nath Cos. Vice President Dave Walia said Marriott typically takes 120 days to approve a franchisee but, because of the firm’s track record, approved this deal in 90 days.
Walia said Nath plans to spend $15M to upgrade the hotel’s guest rooms, common areas and landscaping over the next 36 months and hopes to begin the first phase in November, pending approval of its plans from Marriott.