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UPDATE: Strategic Hotels Opts for Hold on 390-Key Marriott Resort

LINCOLNSHIRE, IL-Once on the market with the Marriott Schaumburg and Embassy Suites Lake Buena Vista Resorts, the 390-room Lincolnshire Marriott Resort is not considered a 2006 disposition candidate. Strategic Hotels and Resorts got a combined $78 million for the assets in October.

By Mark Ruda | Updated on March 01, 2006

LINCOLNSHIRE, IL-On the market last year , the 390-room Lincolnshire Marriott Resort is now a keeper–at least until a large amount of capital improvements are needed. Strategic Hotels and Resorts considered selling the property at Milwaukee Avenue and Half Day Road last year, when it also sold its Marriott Schaumburg and Embassy Suites Lake Buena Vista Resorts.

Providence, RI-based Procaccianti Group bought the 398-room Marriott at 50 N. Martingale Rd. last year for $23.9 million. Strategic Hotels and Resorts netted nearly $54 million for the 333-room Embassy Suites in Lake Buena Vista, FL. Those sales were part of a strategy to tilt the REIT’s portfolio further toward the luxury end.

Earnings before interest, taxes, depreciation and amortization were up more than 18% last year at the Lincolnshire property, to $6.3 million, with revenue per available room improving 5% to $81.14. “It’s looking like it’s having a good year,” says president and chief executive officer Laurence S. Geller during his company’s earnings conference call Wednesday. “It’s not a core asset, and it’s not an asset we intend to keep for a long time.”

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