Arbor Lodging Partners bought the Eaglewood Resort & Spa in Itasca, a sign the Chicago-based hotel investor is betting on suburban properties in the resurgent golf market.
The price for the 102-acre property adjacent to the prestigious Medinah Country Club was not disclosed, according to a report by Crain’s. Arbor purchased the resort from an affiliate of AllianceBernstein, which had taken over the property in 2022 to resolve a distressed $29 million mortgage.
The price was probably below the outstanding loan balance due to declining property values at a time of rising interest rates, the outlet reported. Jones Lang LaSalle’s Adam McGaughy and John Nugent brokered the sale.
The acquisition signals a strategic pivot for Arbor, which typically invests in traditional urban hotels. Eaglewood has a 295-room hotel that caters to corporate guests but also includes unique features such as a championship golf course, a spa, a bowling alley and 39,000 square feet of meeting space. It is Arbor’s first venture into golf resort ownership, reflecting broader industry trends since the pandemic.
Golf courses, once seen as money-losing assets, have become profitable as participation in the sport has surged. Arbor CEO Vamsi Bonthala described Eaglewood as a “unique and irreplaceable asset” with significant potential to grow as a destination for corporate meetings and events.
Arbor’s interest in golf comes shortly after the company sold its Hampton Inn/Homewood Suites in downtown Chicago at a steep loss compared to its 2018 purchase price, underscoring the financial pressures faced by urban hotels in the post-pandemic era.
In contrast, Bonthala is optimistic about suburban hospitality assets like Eaglewood, especially given their accessibility and appeal to corporate groups seeking in-person gatherings. He emphasized the resort’s proximity to O’Hare Airport and the suburbs north and west of Chicago strategic advantages.
The purchase also reflects a growing trend of non-traditional investors — such as hotel operators and private equity firms — entering the golf industry, driving up property values. Arbor financed the acquisition with a loan, though details were not disclosed.
Originally built in 1971 and expanded in 2002, Eaglewood has a colorful history, including serving as a site for weight-loss retreats modeled on “The Biggest Loser.” The resort had been owned by Denver-based Amstar until 2022, when it was turned over to AllianceBernstein.
— Joel Russell