CBRE Hotels presenst the opportunity to acquire the fee-simple interest in the under construction 158-room Hampton Inn in Orland Park, IL. Scheduled to open in late June of 2023, the five-story Hampton Inn is a steel and concrete institutional grade asset that is the first newly constructed Hilton branded asset to be built in the area in over 15 years.
Strategically located three miles north of Interstate 80 along the westside of LaGrange Road, the Property is situated within a mixed use development that consists of multiple restaurants and retail tenants, all of which are great amenities for arriving guests. Moreover, the Orland Park retail corridor contains over 14M square feet (SF) of retail inventory and is the largest shopping destination for many of Chicago’s southern suburbs, which helps drives high rated weekend lodging demand to area hotels.
In addition to its dominant retail market, the competitive set is proximate to numerous corporate, leisure, and group demand generators that create thousands of room nights both during the week and on weekends, including the 120,000 square foot Tinley Park Convention Center and Credit Union 1 Amphitheater (the largest outdoor music venue in metro Chicago).
These demand drivers have created a well-diversified economy within the I-80 corridor that continues to be the top performing suburban market in metro Chicago. The to be opened new Hampton Inn is positioned to have an expedited ramp-up period as it is the first Hilton property developed in the submarket in over fifteen years.
For the TTM period ending March 2023, the market achieved a RevPAR of $112 driven by an impressive occupancy of 75% and an ADR of $149. This strong revenue performance is nearly 10% higher than RevPAR levels achieved in year-end 2019 and is further evidence of the solid base of demand drivers in the market.
Lastly, the Hotel has been approved for a Class 7c Property Tax Incentive, which will lead to a reduced property assessment valuation and significantly lower taxes. Offered unencumbered of management, new ownership is expected to receive a long-term franchise agreement which will allow a new owner the opportunity to implement their own marketing plan to capitalize on the strong anticipated operational performance.
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