MCR Hotels Buys Hyatt Regency O’Hare in Chicago

MCR Hotels has expanded its reach into the Chicago-area hotel market with the recent acquisition of the Hyatt Regency O’Hare for about $40,000 per key.

The New York-based hotel management company, led by chairman and CEO Tyler Morse, paid close to $44 million to secure the 1,095-room hotel at 9300 West Bryn Mawr Avenue in Rosemont, Crain’s reported. Berkadia’s Ryan Lindgren represented Hyatt Hotels Corporation in the transaction.

The sale represents a strategic pivot for MCR toward larger, full-service hotels, expanding beyond its usual portfolio of select-service properties.

The 11-story hotel’s location is near O’Hare International Airport, with access to the Donald E. Stephens Convention Center. It has 110,000 square feet of meeting space and is one of the largest hotels in the region, outside of downtown Chicago.

The acquisition comes at a challenging time for Chicagoland hotel owners. Rising property tax valuations have more than doubled for many major hotels in the downtown area, straining profitability and dampening investor sentiment.

Revenue per available room has shown some recovery, but revenues are still falling short of pre-pandemic levels when adjusted for inflation. Increasing labor costs are squeezing margins, further complicating the economic outlook for hotel operators.

Hyatt’s decision to sell the property is consistent with its ongoing strategy to reduce its direct ownership of hotels and focus more on management and franchising. The company will retain its brand on the property through a franchise agreement, while MCR takes over management responsibilities.

With MCR’s acquisition of the Hyatt, the company now manages over 25,000 guest rooms across 37 states.

— Andrew Terrell