Marcus & Millichap has brokered the $19.2 million sale of a three-hotel portfolio in Chicago’s western suburbs comprising 262 rooms.
The properties included two in Elgin, Illinois, a Comfort Suites at 480 Bushwood Drive and Country Inn and Suites at 2270 Point Blvd., and a Holiday Inn Express at 2595 Bunker Hill Drive in neighboring Algonquin, Ill.
Marcus & Millichap First Vice President Investments Ebrahim Valliani and Senior Associate Michael Klar represented the seller, a Chicago-based investment group. They also procured two separate buyers: a Wisconsin-based investment group entering the Chicago-area market with its purchase of the Comfort Suites and Holiday Inn Express, and a local investor who bought the Country Inn and Suites in a 1031 exchange.
“Hospitality as a whole has rebounded nicely across the Chicagoland area, and investors are showing a strong interest in reputable hotel brands in the suburban market, especially outside of Cook County where property taxes remain lower,” said Valliani. “With people returning to regular business and leisure travel, occupancies and daily rates across the U.S. are rising and point to sustainable upward momentum in the sector, which makes the timing good for value-add investment opportunities.”
All three properties are expected to undergo capital improvements in the coming months. Built in 2006, the Comfort Suites has 78 guest rooms; the Country Inn and Suites was constructed in 2000 and has 98 guest rooms; and the Holiday Inn Express was built in 2001 and has 86 guest rooms.
Valliani leads Marcus & Millichap’s Midwest Hospitality Team in conjunction with the firm’s national Miller-Gomes Hotel Team led by Senior Vice President Allan Miller and Senior Managing Director Chris Gomes. The Midwest Team, part of the company’s National Hospitality Division and based in the Chicago area, has closed 15 hotel sales across multiple states so far in 2022, including Illinois, Indiana, Michigan and Wisconsin. The Miller-Gomes Hotel Team is Marcus and Millichap’s top-grossing hospitality team and has over 70 active listings across 20 states, with 35 assets under contract and more than 40 closings so far this year.
