The Opportunity

Berkadia Hotels & Hospitality (‘Berkadia’) has been exclusively retained in connection with the solicitation of offers to acquire the Hyatt Regency Deerfield (the 'Property', 'Asset', or 'Hotel'). The 300-room full service Hotel, located in the Chicago North hotel submarket, was originally built in 1988 and underwent a comprehensive $14 million renovation in 2018 and 2019. During 2019, the property realized $12.3 million in total revenues and an NOI of $929,063 (7.7% margin). ADR in 2019 grew at 8.6% rate to $136.2 – realizing a $77.5 RevPAR and 93.4% penetration index rate when compared to the competitive set.

Fresh out of its transformative renovation, the Hotel was impacted by the Covid-19 pandemic, when business travel and events came to a complete halt. This unprecedented impact to the lodging industry limited the ability of the Hotel to fully realize the post renovation performance the property was trending towards. With the pandemic in the rearview mirror and business group travel in an accelerating upward trend, the Hotel is in a unique position, as one of the most recently renovated hotels in the competitive set, to capture the returning business and group demand. ​

The property is conveniently located directly adjacent to the Walgreens Boots Alliance (Fortune 500 Rank #18) corporate headquarters and surrounded by over 12.7 million square-fee of class A office space within a 5-mile radius. Chicago O'Hare International Airport, located 15 miles south, is the fourth busiest airport in the world (2021) and ranked #1 in 2019 for the most connecting flights, serving as major domestic and international travel hub.

This transaction represents a unique opportunity to acquire a premium asset below replacement cost and benefit from the accelerating recovery of corporate business travel, group demand, and market economy.

investment Highlights

Transformative $14M renovation
Accelerating business and group demand recovery
Significant management and operational upside
The Hotel is located outside of Cook County, avoiding high property tax reassessment risk
No competitive supply entering the submarket in over five years and no new construction in the development pipeline
Adjacent to Walgreens Boots Alliance Corporate Headquarters

THE HOTEL

GALLERY

THE MARKET

investment advisory

KYLE STEVENSON

Managing Director

703.888.6578

Kyle.Stevenson@Berkadia.com

JOHN TESTERMAN

Senior Director

540.255.2967

John.Testerman@Berkadia.com

HARRY MANCERA

Financial Analyst
404.452.1110
Harry.Mancera@Berkadia.com

RALPH DEPASQUALE

Managing Director

IL Broker of Record

License # RB14022900

mortgage banking

ANDREW COLEMAN

Senior Managing Director

240.204.5132

Andrew.Coleman@Berkadia.com

LINDSEY DEBUTTS

Senior Director

240.204.5131

Lindsey.deButts@Berkadia.com

MIAMI
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Suite 1650
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Chevy Chase, MD 20815

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