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Hostmark Takes Over $180M Hotel for Lenders

ROSEMONT, IL-Two banks acquired the 556-room Intercontinental Chicago O’Hare here after the Harp Group declared bankruptcy on the 3-year-old hotel.

By Robert Carr | Updated on November 30, 2011

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.

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