Sale underscores investor interest in value-add opportunities amid travel rebound

Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, today announced it has brokered the $19.2 million sale of a three-hotel portfolio in Chicago’s western suburbs comprising 262 rooms.

The properties included two in Elgin, Ill., a Comfort Suites at 480 Bushwood Drive and Country Inn and Suites at 2270 Point Blvd., and a Holiday Inn Express at 2595 Bunker Hill Drive in neighboring Algonquin, Ill.

Marcus & Millichap’s Ebrahim Valliani, first vice president investments, and Michael Klar, senior associate, represented the seller, a Chicago-based investment group. They also procured two separate buyers: a Wisconsin-based investment group entering the Chicago-area market with its purchase of the Comfort Suites and Holiday Inn Express, and a local investor who bought the Country Inn and Suites in a 1031 exchange.

“Hospitality as a whole has rebounded nicely across the Chicagoland area, and investors are showing a strong interest in reputable hotel brands in the suburban market, especially outside of Cook County where property taxes remain lower,” said Valliani. “With people returning to regular business and leisure travel, occupancies and daily rates across the U.S. are rising and point to sustainable upward momentum in the sector, which makes the timing good for value-add investment opportunities.”  

All three properties are expected to undergo capital improvements in the coming months. Built in 2006, the Comfort Suites has 78 guest rooms; the Country Inn and Suites was constructed in 2000 and has 98 guest rooms; and the Holiday Inn Express was built in 2001 and has 86 guest rooms.

Valliani leads Marcus & Millichap’s Midwest Hospitality Team in conjunction with the firm’s national Miller-Gomes Hotel Team led by Allan Miller, senior vice president, and Chris Gomes, senior managing director. The Midwest Team, part of the company’s National Hospitality Division and based in the Chicago area, has closed 15 hotel sales across multiple states so far in 2022, including Illinois, Indiana, Michigan and Wisconsin. The Miller-Gomes Hotel Team is Marcus and Millichap’s top-grossing hospitality team and has over 70 active listings across 20 states, with 35 assets under contract and more than 40 closings so far this year.

About Marcus & Millichap (NYSE: MMI):

Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2021, the company had 1,994 investment sales and financing professionals in 82 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 13,255 transactions in 2021, with a sales volume of approximately $84.4 billion. For additional information, please visit www.MarcusMillichap.com.

Marcus & Millichap’s Ebrahim Valliani and Michael Klar recently brokered the $19.2 million sale of a three-hotel portfolio in Chicago’s western suburbs, including a Comfort Suites and Country Inn and Suites in Elgin, Ill., and a Holiday Inn Express in Algonquin, Ill.
Marcus & Millichap’s Ebrahim Valliani and Michael Klar recently brokered the $19.2 million sale of a three-hotel portfolio in Chicago’s western suburbs, including a Comfort Suites and Country Inn and Suites in Elgin, Ill., and a Holiday Inn Express in Algonquin, Ill.
Marcus & Millichap’s Ebrahim Valliani and Michael Klar recently brokered the $19.2 million sale of a three-hotel portfolio in Chicago’s western suburbs, including a Comfort Suites and Country Inn and Suites in Elgin, Ill., and a Holiday Inn Express in Algonquin, Ill.