- 104-Room, Three Story, Upper Midscale Hotel Built in 1997
- Two miles from the Chicago Bears Practice Field
- Priced Significantly Below Replacement Cost at $48,029 Per Key
- 50 Miles South of Chicago Midway International Airport
- 55 Miles from the Chicago Downtown-City Center
- Conversion Opportunities Available (Inquire with Agent)
Investment Overview:
Marcus & Millichap’s National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Holiday Inn Express & Suites Bourbonnais. The hotel is priced at $4,995,000 or $48,029 price per room; this represents a 2.20 times multiple on year-end 2018 room revenues. The wellmaintained property, constructed in 1997, is located along the Interstate 57 and Highway 50 interchange, right near the Chicago Bears’ practice facility.
This three-story, 104-room hotel presents a new investor the opportunity to acquire an opportunistic property within one hour of downtown Chicago. The property will need to be converted to a different brand in January of 2020, when the hotel is scheduled to leave the IHG system. Please inquire for additional details with the listing agents. This value-add hospitality asset is being sold at a price below replacement cost. The hotel is well-equipped with an indoor pool, fitness room, and meeting facilities.
Operationally, the hotel achieved $2,401,261 million in room revenue, resulting in a net-operating income of approximately 30 percent of total revenue; this translates to $738,350 before debt service. Focusing on increasing the hotels operational efficiency, a new investor can see a significant boost in hotel performance, seizing a larger portion of top-line revenues. The property has been consistently outperforming the competitive set in both occupancy and ADR, reaching a RevPAR penetration index of 118 percent.
The expenses include provisions for a three percent management fee and four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.
Property Overview:
The Holiday Inn Express & Suites Bourbonnais is a 104-room, three-story, limited-service hotel. The InterContinental Hotels Group-branded property is upper-midscale and offers guests multiple amenities. The rooms feature a microwave, mini refrigerator, and flat-screen television. Also featured in the common areas are an indoor heated pool and a fitness center.
Location Overview:
Bourbonnais, Illinois is located on the northeastern part of the state sitting 54.9 miles south of Chicago which is the third largest city in the United States. The property is situated on 62 Ken Hayes Drive and in close proximity to multiple demand generators. The region has diverse industries including industrial, pharmaceutical, military and technology. In November of 2017, the Nucor Steel plant (1.1 miles) selected the region for a $180 million expansion and the company which supports agriculture, automotive, construction, power generation, and other industries. GSL Behring, Kankakee County's top manufacturing employer, and global biotechnology leader completed work on a 300,000-square-foot expansion for the seven-story tower building with an estimated cost of $240 million. They also took the initial steps on a 1.8 million-square-foot addition (1.0 mile), and the entire expansion will take place on 74 acres with a time period of 12 years to complete. Other recent expansions include the FutureCeuticals, Momence (11.6 miles) completed a $2-million, 14,700-square-foot expansion the Army National Guard and Readiness Center (13.5 miles), Kankee opened a $53.3-million, 185,200-square-foot complex along Airport Boulevard. The region also offers leisure traveler activities and the property is in close proximity to Exploration Station and Perry Farms (3.7 miles). Furthermore, the city hosts the Chicago Bear's professional football training camp at the Snowbarger Athletic Park (2.0 miles) every summer which drives room demand to the region.
