Highly visible, transit orientated CHICAGO O HARE SUITES HOTEL hotel located in Chicago, IL Holliday Fenoglio Fowler, L.P. ( HFF ) is an Illinois licensed real estate broker OFFERING SUMMARY
THE OFFERING Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to present Renaissance Chicago O Hare Suites Hotel (the Hotel or Renaissance O Hare ), which offers investors the opportunity to acquire a recently renovated, management unencumbered hotel within the coveted O Hare submarket of Chicago. Renaissance O Hare is an all-suite 15-story, hotel tower containing 362 keys with 9,400 square feet of meeting space and ballroom areas plus ample parking. The Hotel occupies a strategic location that places it within the midst of 2.37 million square feet of class A office space with immediate proximity to Rosemont s amenities. KEY PROPERTY STATISITICS HOTEL NAME Renaissance Chicago O'Hare Suites Hotel ADDRESS 8500 W Bryn Mawr Ave, Chicago, IL 60631 GUESTROOMS FUNCTION SPACE 362 keys 14 meeting rooms, 9,454 sq ft of total meeting space With frontage along I-90, the Hotel benefits from superb presence and visibility along the interstate. Renaissance O Hare has immediate access to O Hare International Airport, the Rosemont and Cumberland CTA Blue Line stops, and two of Chicago s most integral expressways I-90 and the aforementioned I-294. The transportation lines serve as a link to downtown, which provides the O Hare submarket with a huge competitive advantage, allowing employers to tap into the highly educated workforce residing within the Chicago CBD and surrounding neighborhoods. PARKING* FOOD & BEVERAGE 698 parking deck spaces and 15 surface parking spaces (for authorized vehicles only) plsu 16 ADA designated parking spaces Breakfast (for a fee - Buffet, Continental, Full American, Grab-n-Go, Hot) Urban Grill R Bar Starbucks The Market AMENITIES Airport Shuttle Fitness Center Swimming Pool Spa Meeting Event Space YEAR BUILD / LAST RENOVATED 2005 / 2016 MANAGEMENT Unencumbered BRAND Marriott Renaissance * Hotel has exclusive access to 170 parking spaces in the connected parking garage, designated with signage. The Hotel has evening and weekend access to an additional 528 spaces. 2 OFFERING SUMMARY
and Lawson Products OFFERING SUMMARY 3
KEY INVESTMENT HIGHLIGHTS Recently Renovated, Stylish All Suites Sophisticated and Savvy Unencumbered by Upscale Hotel Hotel Brand Management Prior to the reveal in the summer of 2016, Renaissance O Hare provides guests Renaissance Hotels is a global, full-service, The Renaissance O Hare consists of 362 total the Hotel underwent a substantial $7.3 with 362 newly renovated guestrooms niche brand featuring contemporary styling keys without management encumbrance. The million dollar overhaul of its guestrooms, with three different layouts to choose with touches or luxury and creativity across Hotel will allow investors to align with preferred lobby, common areas, and restaurant space. from: Renaissance Suite, Club Level, and all 160 hotels in over 35 countries. While regional and national management companies This significantly transformed the Hotel s 1 Bedroom 2 room suite. All rooms are benefitting from Marriott s unparalleled and with their operating targets. ambiance from a dated, casual atmosphere suites with large room sizes averaging demand engines and vast international to a contemporary and fresh one. approximately 440 SF that are well suited customer base, each Renaissance hotel for the corporate and leisure market. offers its own intriguing personality, unique local flavor and distinctive style. 4 OFFERING SUMMARY
Unrivaled Connectivity Drawing Strong Corporate Demand Thriving, Urban, Mixed-Use Environment Highly Desirable Office Submarket and Dominant Employment Center Geographically situated at the center of Metropolitan Chicago, at the junction of two of the region s most vital driving arteries (I-90 and I-294), the Hotel is located within a 5 minute drive from the CTA, the Metra and O Hare International Airport, the country s second busiest airport. Rosemont is a walkable, vibrant, mixed-use environment attracting nearly 100,000 daily visitors. The Hotel is within a five minute drive of over 45 restaurants, 22 hotels and a multitude of entertainment and retail spaces. Economically robust and well diversified submarket, which is home to many prominent employers and provides a probusiness environment. OFFERING SUMMARY 5
RECENTLY RENOVATED, UPSCALE HOTEL In June 2016, the Hotel unveiled its $7.3 million comprehensive renovation. This overhaul included a refurbishment of all 362 suites as well as the lobby, common areas, and restaurant spaces. This substantially transformed the Hotel s ambiance from average, casual to elevated and sophisticated. Over $3.3 million was invested into brand new fixtures, furniture, and equipment for the public spaces and guestrooms, with most of that being focused on rooms upgrades. ALL SUITES HOTEL Renaissance O Hare provides guests with 362 newly renovated guestrooms with three different layouts to choose from: Renaissance Suite, Club Level, and 1 Bedroom 2 room suite. All rooms are suites with large room sizes averaging approximately 440 SF that are well suited for the corporate and leisure market. 6 OFFERING SUMMARY
SOPHISTICATED AND SAVVY BRAND SUPPORTED BY MARRIOTT S UNRIVALED RESERVATION SYSTEM AND BRAND NETWORK In September 2016, Marriott International announced the completion of its acquisition of Starwood Hotels & Resorts Worldwide, effectively creating the largest reservation system worldwide. The new company operates or franchises more than 5,700 properties and 1.1 million rooms, representing 30 leading brands from the moderate-tier to luxury in over 110 countries. With this acquisition, the Renaissance is poised to capture the corporate and leisure traveler demand from SPG s approximately 21 million members, creating a total membership base of 75 million members (as of 2015 member totals). UNENCUMBERED BY MANAGEMENT Management Flexibility The Renaissance O Hare consists of 362 total keys without management encumbrance. The Hotel will allow investors to align with preferred regional and national management companies and with their operating targets. OFFERING SUMMARY 7
THRIVING, URBAN MIXED-USE ENVIRONMENT Rosemont possesses an unrivaled sense of urbanization and connectivity. Spurred by the $16 million construction of a new I-294 offramp at Balmoral Avenue in 2011, Rosemont has become the epicenter of office, dining, shopping, and entertainment activity within the O Hare area and surrounding communities. With a total land area of only approximately two (2) square miles, Rosemont is exceptionally walkable, providing easy access to the area s plentiful amenities. With estimated visitors reaching 75,000 to 100,000 daily, Rosemont generates healthy demand for the hoteling industry, fueled by the top demand drivers at right. // MB Financial Park Opened in 2012, the $85 million 200,000 SF park is a thriving community of 12 venues offering a diverse range of dining options, live music, comedy, state-of-the-art film and bowling situated around a 30,000 square foot central garden, which offers various outdoor seasonal activities as well. // Fashion Outlets of Chicago Opened in 2013, the $250 million 530,000 SF Fashion Outlets of Chicago is a two-level upscale outlet mall featuring over 150 retailers and 18 restaurants the likes of Bloomingdale s The Outlet Store, Last Call by Neiman Marcus and Saks Fifth Avenue OFF 5th. // The Donald E. Stephens Convention Center The 840,000 SF convention center enter offers adaptable exhibition space as well as a ballroom capable of hosting up to 4,000 guests. // The Rosemont Theatre A two-tiered modern performing arts center capable of comfortably accommodating an audience of 4,400. // The Rosemont Dome & Ballpark The Rosemont Dome and Ballpark is a 2,000 seat softball/baseball stadium built to comply with NCAA standards and adjacent 140,000 square foot indoor sports venue. // Rivers Casino The 147,000 square foot, $445 million project opened in 2011 and is under a 7 minutes drive north of the Hotel. 8 OFFERING SUMMARY
Cumberland Station and Lawson Products Cook County Forest Preserve Rosemont Station rvice ttle Se Cook County Forest Preserve hu CTA S To O Hare Benchmark Gastropub O Hare New 16-Acre Development Minor League Baseball Stadium The Pearl Mixed-Use Complex 0.25 Miles Hi gg ins Ro 0.25 Miles ad Hig R r ive d a Ro gin Municipal Building Devo n Ro sr ad oad On-ramp to I-90 O FFERING SUMMARY 9
HIGHLY DESIRABLE OFFICE SUBMARKET AND DOMINANT EMPLOYMENT CENTER Due to its central location, proximity to O Hare International Airport, and access to public transportation, the O Hare submarket has led the suburban office recovery. Many companies have identified the O Hare submarket as the ideal location for a new office or a consolidation of multiple locations. Geographically, O Hare sits in the center of the Chicago metro area providing the middle ground for employees coming from surrounding locations, not to mention immediate access to the airport for multimarket companies. Additionally, O Hare is the only major submarket providing direct access to the CTA s elevated train lines to and from the city, allowing convenient public transportation for city-dwelling staff members. The O Hare submarket has experienced the strongest rebound of all the suburban office markets. The vacancy rate has dropped by more than 700 basis points in five years, an average of a 140 basis point decrease per year. Activity remains steady and vacancy continues to decline, resulting in higher rental rates and fewer concessions. In addition, there are nearly no available development sites left in the O Hare submarket. This lack of new construction and continued strong demand will allow rental rates to continue to increase for the foreseeable future. 25.0% 23.0% 21.0% 19.0% 17.0% 15.0% 13.0% 11.0% 9.0% O HARE AREA VACANCY SINCE 2011 2011 2012 2013 2014 2015 2016 Total Vacancy Class A Vacancy NAI Hiffman MAJOR EMPLOYERS IN O HARE 10 OFFERING SUMMARY
Contact Information HFF Chicago 181 West Madison Suite 3900 Chicago, IL 60602 Telephone: 312.528.3650 Contacts Tony Malk Managing Director 310.407.2127 tmalk@hfflp.com Fax: 312.528.3651 Jeff Bucaro Director 312.528.3678 jbucaro@hfflp.com Nicole Schmidt Associate 312.300.7283 nschmidt@hfflp.com 2017 Holliday Fenoglio Fowler, L.P. ( HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.