Peter Dumon and the Tinley Park Holiday Inn
Harp Group bought the Tinley Park Holiday Inn with plans for a renovation and rebrand.
The Westmont-based firm acquired the hotel at 18501 Harlem Avenue in Tinley Park for $22 million, according to Cook County property records. Selling the property was Reva Stillman, owner of Mid Continent Development who controlled a 68 percent stake in the hotel, and Indiana-based Coventry Hospitality, which owned 32 percent of the hotel.
A $14.25 million acquisition loan was provided by Walker & Dunlop, records show. The deal closed in mid-November.
Harp Group will receive up to $4 million in property tax abatements after a July vote by the village board to aid the deal, according to the Daily Southtown. A new 1-percent increase in the local hotel tax will also help subsidize the deal. The property’s annual tax bill is $1.6 million, more than Tinley Park’s eight other hotels combined, the paper reports.
Harp Group plans to invest as much as $9 million in renovation to the hotel before switching to another brand, possibly Sheraton, according to the Daily Southtown. A representative for the company did not immediately reply to a request for comment.
The hotel is connected to the Tinley Park Convention Center, and Harp Group has inked a deal to take over management of the center from its previous owners, according to the Daily Southtown.
The 202-room hotel is located just off of I-80.
Even with a multiplying field of competitors, Chicago-are hotels are staying busy. The region’s occupancy rate rose by 10 basis points to 68.9 percent during the 12-month period ending in June.
In March, the Hilton Hotel near O’Hare Airport was sold to Hong Kong-based Junson Capital for $37 million. In August, the real estate arm of Prudential Insurance listed two Rosemont hotels, deals that could be the biggest hotel sales in the area in years.Tags: Commercial Real Estate, hotels, suburbs
Source : https://therealdeal.com/chicago/2018/12/05/harp-group-buys-tinley-park-holiday-inn-for-22m/