A Rhode Island-based hotel investor that doubled down on Chicago during the pandemic is now looking to divest its suburban holdings as the hospitality market finds its footing.
Magna Hospitality Group has listed two properties for sale: the 369-key DoubleTree at 9599 Skokie Boulevard in Skokie and the 178-key Hilton Garden Inn at 1818 Maple Avenue in Evanston, Crain’s reported. Real estate firms Berkadia and JLL have been retained to market the properties.
The firm, led by CEO Robert Indeglia, acquired the two North Shore hotels as part of larger portfolio deals. It bought the DoubleTree in 2021 and the Hilton Garden Inn in 2016. Berkadia’s Ryan Lindgren is marketing the DoubleTree, while JLL’s Adam McGaughy and John Nugent are marketing the Hilton Garden Inn.
The sales will be a gauge of investor confidence in the northern Chicago suburbs, particularly as the pandemic recedes and interest rates start to decline, potentially making it easier for buyers to secure financing.
Local hotel sales increased 22 percent in the first half of this year compared to 2023, though property values remain sluggish compared to pre-pandemic levels, according to MSCI Real Assets.
The firm’s Skokie hotel boasts 21,000 square feet of meeting space, a rooftop ballroom and recently renovated guest rooms. Its proximity to the soon-to-be redeveloped Westfield Old Orchard mall could enhance its value.
The DoubleTree is expected to fetch a lower price per room compared to nearby properties like the Westin Chicago North Shore, which sold for $83,000 per room in a recent transaction. While pricing for the DoubleTree has not been disclosed, the hotel’s brand and meeting space could make it an attractive investment despite the pandemic’s lingering impact on property values.
The Evanston hotel is just two blocks from Northwestern University. After acquiring the Hilton Garden Inn in 2016, the firm invested $6.8 million in renovations.
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Marketing materials highlight nearby developments, including the $800 million Ryan Field rebuild and the Church Street Plaza redevelopment, as key selling points.
Magna’s strategic pivot comes after it placed significant bets on downtown Chicago, acquiring the 368-room Embassy Suites Chicago at 600 North State Street and the 361-room Hilton Garden Inn at 10 East Grand for nearly $130 million in 2022. The firm also picked up the St. Clair Hotel in 2021 as its previous owner faced financial challenges.
— Andrew Terrell