CHICAGO—Frontier Development & Hospitality Group LLC and its partners, Sun Development & Management Corporation and 3H Group Inc., have acquired the seven-story, 254-key Chicago Marriott Suites Downers Grove hotel.
The 6.4-acre property is located approximately 20 miles west of Chicago and 11 miles from O’Hare International Airport. Downers Grove is a suburb that generates global, national, and regional corporate demand from companies such as MetLife, Microsoft, and Nuveen.
The Chicago Marriott Suites Downers Grove hotel offers 254 all-suite guestrooms with separate living areas and amenities, including 3,400 square feet of meeting space, an indoor and an outdoor pool, a fitness center, in-room dining, a three-meal restaurant and bar (ALLIE’S American Grille), and on-site parking. The property is scheduled to undergo a $10 million capital improvements plan to enhance, upgrade, and position the property for future success.
“This hotel purchase presented a unique opportunity to acquire an institutional asset from a REIT at a great basis, during a down market, with strong upside potential,” said Evens Charles, CEO of Frontier Development & Hospitality Group LLC. “Collectively, this acquisition is consistent with our commitment to drive value and expand in strategic submarkets and diversify our growing portfolio. We are excited to increase our footprint and overall presence in this Chicago submarket.”
“This property is a great opportunity for a joint venture,” said Hiren Desai, president and CEO of 3H Group. “Not only is it well positioned within the region, but it complements other joint venture properties we have in the Chicago area.”
“This is our first joint venture with Frontier, and we have found a partner who shares our views of the hospitality real estate market today,” said Bharat Patel, chairman and CEO of Sun Development & Management Corp. “This acquisition of the Chicago Marriott is a strong foundation for us to continue our growth through further investments and acquisitions while being aligned with two companies that share similar objectives and outlook on the hospitality and real estate markets.”