ROSEMONT, IL-Hostmark Hospitality Group, based in Schaumburg, IL, has assumed management of the 556-room Intercontinental Chicago O’Hare, located here. Lenders for the property took possession of the site after a bankruptcy judge ruling in July, and were finally able to place Hostmark in charge of the hotel.
The Harp Group built the hotel in 2008, but were not able to pay off the debt taken out for the $180 million development cost after the economy crashed. Lenders that included US Bank and Amalgamated Bank pushed Harp to declare chapter 11 bankruptcy on the property through its ownership group River Road Hotel Partners LLC. The lenders, led by Amalgamated, have taken over the hotel, with US Bank taking a senior debt position.
Peter Connolly, EVP of operations and development for Hostmark, tells GlobeSt.com that the lending group hired his firm this past summer to take over management, but the company was not able to be installed fully until this week. He says the uncertainty about the hotel should be over. “We have high hopes, it’s a great property,” Connolly says.
The local hotel market also had high hopes earlier this year, he says, but the second economic slump this past summer slowed down the Chicago hospitality industry. “We’ll still finish the year with advances on revenue per room, but all that really comes from the first half of the year,” Connolly says. “If you had asked me in June if we would have double-digit revenue per room, I would have said yes – now, not so much.”
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