AMC Delancey Group, Inc. Acquire the Holiday Inn Select
in Naperville, Ill. for $31.5 million
1, 2006)—The Harp Group, a Chicago-based real estate investment and development
company specializing in hospitality and retail projects, announces that
in partnership with Mid-America Development Partners and AMC Delancey Group,
Inc., it has acquired the Holiday Inn Select in Naperville, Ill. from Naperville
Hotel, LLC. for a purchase price of $31.5 million. Chicago-based
Portfolio Hotels & Resorts will manage the 426-room hotel, which is
scheduled to undergo an extensive transformation. Molinaro Koger
brokered the deal with financing provided by Anglo Irish Bank. Andrew
Benioff of Philadelphia’s RFG Hospitality Capital, a wholly-owned subsidiary
of Remington Financial Group, acted as investment banker and advisor to
the partners. The new partnership, AMC Delancey HMA Partners, LP.
brings together three partners with extensive real estate and hospitality
experience, both locally in the Chicago area and on a national basis.
Experts at repositioning, the partners have renovation and expansion plans for the Holiday Inn Select Naperville, which include a complete guestroom renovation, the addition of two new restaurants, expansion of the hotel’s function space to approximately 40,000 square feet, improvements to the pool area to create a more family-friendly environment, revamping of the fitness facility to make it more conducive for avid exercise enthusiasts, expansion of the parking facilities, and upgrades to the HVAC system. The hotel’s main entrance will also be shifted to allow for better traffic flow and easier access to all of the hotel’s facilities.
“The Holiday Inn Select is in a prime location in the western Chicago suburbs in an area that continues to grow with additional retail development planned. We look forward to transforming this property and making it a hospitality destination for business and leisure travelers alike,” states Peter G. Dumon, president of The Harp Group. “We are pleased to be working with AMC Delancey on this purchase, and we look forward to a long-term, multi-asset partnership. We appreciate and embrace their investment philosophies."
In addition to a long history of hotel development and repositioning, this is the fifth active hotel investment for managing partner AMC Delancey Group, which pursues a diversified real estate investment strategy by seeking operating partners who have local expertise and the ability to source deals. In addition to the Naperville hotel, AMC Delancey also owns a Holiday Inn in Springfield, Mass. as well as two Radisson hotels in Largo, Md., and Jacksonville, Fla. A full-service Sheraton, currently under extensive transformation is due to open this July in Maitland, Fla.
“This is a significant transaction for AMC Delancey Group, as we have formed our third partnership in the hospitality sector, extended our scope to four hotel brands, and expanded our portfolio westward into Illinois,” commented Kenneth P. Balin, president and CEO of AMC Delancey Group. “We are equally delighted to continue our programmatic relationship with Anglo Irish Bank with the completion of this, our third transaction together. The value-add nature of the repositioning of this hotel is exactly the type of co-investment strategy we target, and we are excited about partnering with The Harp Group and Mid-America and pursuing the reposition strategy.”
“This was the second value-added transaction in Chicago with The Harp Group, Mid-America Development Partners and Portfolio Hotels & Resorts that Molinaro Koger has brokered in the last several months,” states John Jameson, Molinaro Koger’s managing director in Chicago. “The asset was quietly marketed to a select group of buyers. It became apparent early in negotiations that The Harp Group and Mid-America Development Partners would be the most likely buyer for getting the transaction completed in a timely manner due to their vast knowledge of the western suburbs. The group has an excellent opportunity to up brand this asset since the purchase price was below replacement cost.”
The Holiday Inn Select is a full-service hotel conveniently located at 1801 Naper Boulevard in Naperville’s research and technology corridor, and minutes from the historic downtown area. The hotel is immediately adjacent to Freedom Commons, The Harp Group’s planned 25-acre upscale retail and restaurant development that will feature great dining options, service retailers, venues for entertainment and recreation, and facilities offering health, fitness and spa services. The Holiday Inn Select offers guests comfortably-appointed accommodations with a workstation, two-line phone with voicemail and data port, and high-speed Internet access; the Terrace restaurant and Lobby Bar; a full-service business center; concierge services; a fitness center; and a heated indoor pool with spacious sun deck. The hotel’s 27,000 square of flexible meeting space can accommodate groups of to 900 people.
About The Harp Group:
About Mid-America Development Partners:
About AMC Delancy Group:
About Portfolio Hotels & Resorts:
|Also See:||The 394-room Orlando North Hotel, Maitland, Florida Will Re-open Under Sheraton Flag Following Extensive Renovation / January 2006|
|The Harp Group Acquires the 215 room Doubletree Hotel Los Angeles International Airport for $30.5 million / February 2006|