Cut rate: Suburban DoubleTree sells for a song
EMA Hotels buys 309-key Lisle property, which LNR took control of after foreclosure
The suburban hotel market — like Chicago and most of the U.S. — is still trying to rebound from the pandemic but for some investors that has signaled opportunity.
Like the recent deal for a 309-key DoubleTree by Hilton in Lisle. EMA Hotels paid 6.6 million at auction for the property at 3003 Corporate West Drive, according to Crain’s. The DuPage County property had been appraised at $19 million a few years ago, but posted close to $2.5 million in losses last year.
Its problems go back to 2016, when a loan trustee filed a $36.7 million foreclosure suit against hotelier Frank Allgauer. That’s after his venture defaulted on the CMBS loan on the complex, the report noted. The original debt was for $40.5 million. LNR Partners took control of the hotel in February 2018, according to Crain’s. A year later the Hilton was rebranded as a DoubleTree by Hilton.
EMA said it would spend up to $10 million to renovate the Hilton’s interior, according to the report.
Hotel occupancy continues to remain low nationwide but is slowly ticking up. In Illinois, the struggles continue, including in Cook County, where hotel and mall owners owe hundreds of millions in back property taxes. And in May, the Illinois Hotel & Lodging Association asked Chicago to set aside $75 million to aid hotels in their recovery.
[Crain’s] — Holden Walter-Warner