Harp Group buys Tinley Park Holiday Inn for $22M

Dec.December 05, 2018 09:00 AM

Peter Dumon and the Tinley Park Holiday Inn

Harp Group bought the Tinley Park Holiday Inn with plans for a renovation and rebrand.

The Westmont-based firm acquired the hotel at 18501 Harlem Avenue in Tinley Park for $22 million, according to Cook County property records. Selling the property was Reva Stillman, owner of Mid Continent Development who controlled a 68 percent stake in the hotel, and Indiana-based Coventry Hospitality, which owned 32 percent of the hotel.

A $14.25 million acquisition loan was provided by Walker & Dunlop, records show. The deal closed in mid-November.

Harp Group will receive up to $4 million in property tax abatements after a July vote by the village board to aid the deal, according to the Daily Southtown. A new 1-percent increase in the local hotel tax will also help subsidize the deal. The property’s annual tax bill is $1.6 million, more than Tinley Park’s eight other hotels combined, the paper reports.

Harp Group plans to invest as much as $9 million in renovation to the hotel before switching to another brand, possibly Sheraton, according to the Daily Southtown. A representative for the company did not immediately reply to a request for comment.

The hotel is connected to the Tinley Park Convention Center, and Harp Group has inked a deal to take over management of the center from its previous owners, according to the Daily Southtown.

The 202-room hotel is located just off of I-80.

Even with a multiplying field of competitors, Chicago-are hotels are staying busy. The region’s occupancy rate rose by 10 basis points to 68.9 percent during the 12-month period ending in June.

In March, the Hilton Hotel near O’Hare Airport was sold to Hong Kong-based Junson Capital for $37 million. In August, the real estate arm of Prudential Insurance listed two Rosemont hotels, deals that could be the biggest hotel sales in the area in years.

Related Articles

From left: Jim Loewenberg, David Carlins and Joel Carlins

Keeping it in the family: Magellan co-founder’s son becomes CEO

Kyle Glascott and the Green Dolphin nightclub

Glascott Realty picks up troubled site near Lincoln Yards for $4.7M

Elston Avenue retail complex and Baker Development President Warren Baker (Credit: Google Maps)

Baker Development lands $70M refi on Kohl’s-anchored retail complex

Stockbridge Real Estate CEO Stephen Pilch

Stockbridge Capital makes big bet in suburban industrial stronghold

One Lincoln Centre and Balfour Pacific CEO Mark Scott (Credit: Google Maps, iStock)

Blackstone unloads large office complex at slight discount

905 West Fulton Market and DineAmic founders David Rekhson and Lucas Stoioff (Credit: Thor Equities)

Prime & Provisions owner inks lease for new restaurant in Fulton Market

Thor Equities CEO Joe Sitt and a rendering of 800 West Fulton Market (Credit: SOM)

Thor Equities lands $144M construction loan for new tower

Flexport CEO Ryan Petersen and 333 N. Green Street (Credit: Getty Images, Sterling Bay)

Sterling Bay inks tech firm to latest lease at Fulton Market HQ