Developer Betting Renovations To This Suburban Hotel Will Attract Corporate Clients
A north suburban hotel is changing hands and the new owners are hoping to capitalize on surrounding corporate office business. Phoenix Development Partners purchased the 301-room Hyatt Regency Deerfield for $31.5M last month. Phoenix Vice President of Development and Operations Michael Schweitzer told Bisnow the hotel was acquired in a venture with Green Door Capital, Polaris Management Partners and Aimbridge Hospitality.
Schweitzer cited the location as the primary driver behind the deal. The hotel at 1750 Lake Cook Road overlooks the intersection of Interstate 94 and 294. Eight Fortune 500 companies are within six miles of the hotel, including Caterpillar. Schweitzer said Phoenix will execute a $14M capital improvement plan that will significantly upgrade all guest rooms and achieve significant revenue increases.
The seller, Ares Management, acquired the hotel in 2010 as part of a portfolio sale. CBRE Capital Markets' Bill Howe and Jonathan Rice secured a $32.9M acquisition loan to facilitate the deal.