Chicago hotel sales this year haven't commanded the monster numbers of office buildings and multifamily developments, but it's still a competitive and strong market for investors. Here are the top 10 sales of the year to date.
1. Loews Chicago Hotel for $156M
Location: 455 N Park Dr
Price: $156M
Rooms: 400
Sold: February
Price per room: $391k
In a year marked by hotels built in restored buildings, this stands out for being a ground-up development. Loews paid DRW Trading $156M to build what it says is the company’s new standard in Chicago.
2. Waldorf Astoria Chicago for $112M
Location: 11 E Walton
Price: $112M
Rooms: 188
Sold: June
Price per room: $595k
Sam Zell saw a huge return on this investment when he sold it to Laurence Geller. Zell paid $95M for the former Elysian Hotel in 2011. The price per room is a record for a Chicago hotel.
3. Marriott Chicago O'Hare for $72M
Location: 8535 W Higgins
Price: $72M
Rooms: 681
Sold: June
Price per room: $106k
Columbia Sussex bought this hotel from Host Hotels & Resorts as part of a two-property deal that included a New Jersey Marriott. Host owned the Marriott Chicago O’Hare since 1997, when it was acquired as part of a six-hotel, $240M deal.
4. Holiday Inn & Suites Chicago O’Hare Rosemont for $35M
Location: 10233 W Higgins, Des Plaines
Price: $35M
Rooms: 299
Sold: March
Price per room: $117k
Hospitality Properties made a splash in the hot airport hotel market when it bought this property from Rockbridge Capital.
5. Westin Chicago Northwest for $27M
Location: 400 Park Blvd, Itasca
Price: $27M
Rooms: 408
Sold: March
Price per room: $66k
The suburban hotel market is lucrative, as GF Hotels proved when it bought this hotel from Blackstone Group.
6. Homewood Suites Chicago for $22M
Location: 40 E Grand Ave
Price: $22M
Rooms: 233
Sold: February
Price per room: $93k
ARC Hospitality Trust is finding value in economy hotels. Example: buying this hotel from Whitehall Real Estate.
7. Courtyard Chicago Schaumburg for $18M
Location: 1311 American Lane, Schaumburg
Price: $18M
Rooms: 162
Sold: February
Price per room: $111k
PIMCO likes what it sees in Schaumburg's hotel market and its location near O'Hare. This budget hotel is the most expensive of three properties the group bought from RLJ Lodging Trust in February. All three were part of a $300M deal for 13 hotels across the country.
8. Residence Inn Chicago Schaumburg for $17M
Location: 1610 McConnor Pkwy, Schaumburg
Price: $17M
Rooms: 125
Sold: February
Price per room: $140k
The second hotel in PIMCO's shopping spree from RLJ Lodging Trust also has the highest price per room average of any suburban hotel on this list.
9. Springhill Suites Chicago Schaumburg for $15M
Location: 1550 McConnor Pkwy, Schaumburg
Price: $15M
Rooms: 132
Sold: February
Price per room: $115k
The third hotel in PIMCO's buys from RLJ Lodging Trust is spitting distance from the Residence Inn that was $2M more. Schaumburg's hotel occupancy rate through May was 63.2% and RevPAR was $101.45.
10. Hyatt Lisle for $13M
Location: 1400 Corporetum Dr, Lisle
Price: $13M
Rooms: 316
Sold: June
Price per room: $41k
Rounding out the list is this hotel bought by Vinayaka Hospitality from a JV of Ares Management and Aimbridge Hospitality, which spent $7M renovating the rooms and lobby before the sale.
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