Cut rate: Suburban DoubleTree sells for a song

EMA Hotels buys 309-key Lisle property, which LNR took control of after foreclosure

Chicago /
Jul.July 16, 2021 12:43 PM
EMA Hotels founder Jigar Patel and 3003 Corporate West Drive (LinkedIn, Hilton)

EMA Hotels founder Jigar Patel and 3003 Corporate West Drive (LinkedIn, Hilton)

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






    Related Articles

    arrow_forward_ios
    Workforce recovery grants set to help Illinois businesses recover
    Workforce recovery grants set to help Illinois businesses recover
    Workforce recovery grants set to help Illinois businesses recover
    Chicago industrial real estate sales far outpace 2020 figures
    Chicago industrial real estate sales far outpace 2020 figures
    Chicago industrial real estate sales far outpace 2020 figures
    E-commerce, logistics deals drive demand for Chicago industrial market
    E-commerce, logistics deals drive demand for Chicago industrial market
    E-commerce, logistics deals drive demand for Chicago industrial market
    Guinness picks Chicago as location for second US brewery
    Guinness picks Chicago as location for second US brewery
    Guinness picks Chicago as location for second US brewery
    Kaegi’s higher property assessments shock Chicago landlords
    Kaegi’s higher property assessments shock Chicago landlords
    Kaegi’s higher property assessments shock Chicago landlords
    Hilton Chicago Magnificent Mile Suites and Procaccianti Companies CEO James Procaccianti (Facebook, Procaccianti)
    Hilton Chicago Magnificent Mile transferred to lender amid pandemic struggles
    Hilton Chicago Magnificent Mile transferred to lender amid pandemic struggles
    Greystar buys site earmarked for 20-story West Loop tower
    Greystar buys site earmarked for 20-story West Loop tower
    Greystar buys site earmarked for 20-story West Loop tower
    Elk Grove Village to get $1B data center project
    Elk Grove Village to get $1B data center project
    Elk Grove Village to get $1B data center project
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...