CHICAGO—The Laurus Corporation, a privately-owned commercial real estate firm, has just acquired the Renaissance O'Hare Hotel, a 362-suite property located at 8500 W. Bryn Mawr in Chicago about three miles from O'Hare International Airport.
Opened in 2005, the 15-story hotel sits on slightly more than three acres and features more than 15,000-square-feet of meeting space and amenities, including a fitness center, business center, pool, concierge and an airport shuttle.
“The Renaissance O'Hare is a high-profile asset in one of the best submarkets in the Chicago. With the strong absorption in the office market and rapid recovery in the area's convention business, the property is positioned for tremendous RevPAR growth going forward,” says Jean Paul Szita, president and chief financial officer of Laurus Corp. “This property marks the sixth capital allocation from Laurus' Ethika fund and displays an opportunity to acquire an asset at a significant discount to the replacement cost.”
In addition to a highly visible location near the airport and adjacent to the Kennedy Expressway/Interstate 90, the hotel sits amid about 7-million-square-feet of class A commercial office space in the O'Hare submarket, giving it a steady base of corporate and group demand from the surrounding office complexes. These include the corporate headquarters for U.S. Cellular, True Value Hardware and Wilson Sporting Goods, and the Donald E. Stephens Convention Center and Allstate Arena.
Laurus will also launch a $6.5 million renovation program they say will drive future performance. Renovations will include a complete refresh of the guestrooms and corridors, food and beverage outlets and the hotel's 5,000-square-foot ballroom.
“The property's newness, the strength of its location and the opportunity to implement both operational and physical improvements to the asset has made this another compelling investment opportunity for Laurus,” says Austin Khan, the chief investment officer. “We are bringing in Concord Hospitality Enterprises as the new management company, whom we work with on several of our properties, and they will be laser-focused on enhancing the guest experience and driving bottom line performance for our investors.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
