- 125-Room, Three-Story, Interior Corridor, Upper Midscale, Concrete Block Hotel with Elevator
- Less than Nine Miles from Chicago O’Hare International Airport
- Priced Significantly Below Replacement Cost at $64,760 per Key
- Impressive Operations Bringing Down Over 30 Percent to NOI
- Hotel Occupancy Outperforming the Market at 112 Percent Occupancy Penetration
- 87 Percent ADR Market Penetration Showcases Opportunity for Additional Growth
Marcus & Millichap’s National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Comfort Inn Arlington Heights O’Hare. The Choice-branded hotel is priced at $8,095,000 or $64,760 price per room; this represents a 3.42 times multiple on trailing 12-month room revenues. An established property, constructed in 1987, is located on South Arlington Heights Road 10 miles from O’Hare International Airport.
Priced at an attractive 9.16 percent capitalization rate, this three-story, concrete, 125-room hotel presents a new investor the opportunity to acquire a fully-stabilized asset within the Chicago-O’Hare-Schaumburg MSA. A well-maintained hospitality asset, priced below replacement cost, creates value-add opportunity in the property with upside potential through effective cost management and modest revenue growth. The hotel is well-equipped with a fitness center and conference space.
During the first six months of operations, July 2017 through December 2017, the hotel experienced a large 14.1 percent growth in RevPAR. Since then the hotel has continued its upward trend with RevPAR growth of 30.5 percent in 2018; 2019 the hotel has already seen a six percent increase in RevPAR. Management has stabilized, but operations are continuing their upward trend. Amplified by enormous market drivers, a new investor should continue enjoying year-over-year growth. Operationally, this hotel is bringing in $2,407,585 in top-line revenue, resulting in a net-operating income of approximately 30.8 percent of overall revenues; this equates to roughly $741,418 before debt service. The subject property’s above-market occupancy has allowed the hotel to experience higher than average returns and become one of the leading properties in the market. Through the continual upward trend in the hotel’s average daily rate, a new investor will be able to capitalize on moderate year-over-year increases in revenue.
Chicago O’Hare International Airport announced a complete overhaul with an $8.5 billion expansion. Already the number one airport for flights, with this expansion over the next seven years, O’Hare will add 35 new gates, a global terminal, and underground pedestrian tunnels. Chicago has already developed a centrally located car rental facility, part of an $876 million expansion, including Chicago Metra rail lines and parking locations. Chicago O’Hare International Airport has released plans to drastically expand the airport terminal capacity. This $8.5 billion expansion is expected to be completed in 2028. Part of this airport revamp comprises of a new $876 million rental car facility that will facilitate all rental car operations to one central location. Additional renovations include a 24-hour rail line that connects with each terminal and the Chicago Metra rail and parking locations.
The expenses include provisions for a three percent management fee and four percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
The Comfort Inn Arlington Heights – O’Hare Chicago is a 125-room, three-story, upper-midscale hotel built in 1987. Well-equipped with numerous common area and guest room amenities, this limited-service hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, work desk, lounge chair, pillow menu, and a 32-inch flat-screen television with premium channels. Additionally, some splendid common area amenities the hotel has to offer consist of a business center, fitness center, dry cleaning services, and meeting rooms.
Arlington Heights, Illinois is a city located in Cook County in the northeastern region of the state, 25 miles northwest of Chicago and 20 miles east of Elgin. The Comfort Inn Arlington Heights O’Hare Chicago is superbly positioned on South Arlington Heights Road, between Highway 58 and Highway 62. The O’Hare International Airport is set to have significant renovations over the next 10 years, including a new $876 million rental car facility which opened in late 2018 with a 24-hour rail system serving each of the terminals. The $8.5 billion plan to expand the airport will involve 35 new gates with 3.1 million square feet of additional terminal space as well as an underground pedestrian terminal. With the city’s major employers and popular revenue generators in close proximity to the property, this sought-after hotel benefits from many key industries of the city which include healthcare and social assistance, manufacturing, and professional, scientific, tech services. Northwest Community Hospital and Comcast, two of the city’s largest employers located approximately three miles from the hotel, are prime revenue drivers for the surrounding area. The hotel site is located approximately a mile from the Elk Grove Technology Park which upon completion will include 85 acres of technology and industrial businesses within close proximity to major lifestyle and cultural amenities. Other major employers that are responsible for a significant portion of the workforce include United Continental Holdings (23.2 miles), JP Morgan Chase Chicago Headquarters (23.4 miles), University of Chicago (31.7 miles). Revenue generators in the area, like Woodfield Mall (3.8 miles) and O’Hare International Airport (9.5 miles) help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include Robert Morris University - Arlington Heights (.8 miles), the Allstate Arena (7.4 miles), and Rivers Casino Des Plaines (7.9 miles).