Overview
Globalvestment Capital Partners has been exclusively retained to offer for sale, the freehold interest in Project Hercules, a premier 165 rooms hotel property located at 1244 N Dearborn Pkwy, Chicago, IL 60610. Claridge House is located in the heart of the residential Gold Coast. This thirteen-story, restored historic hotel features 165 newly renovated guestrooms, ofiginally built in 1923 and renovated in 2018.
The Claridge House is conveniently located in proximity to iconic attractions such as Wrigley Field (10 Mins Drive), 360 Chicago (5 Mins Drive), the Lakefront Trail (2 Mins Drive), Lincoln Park Zoo (6 Mins Drive), the Magnificent Mile (6 Mins Drive), Soldier Field (10 Mins Drive), the Navy Pier (10 Mins Drive), as well as the countless museums in the downtown area. The property is 12.7 miles away from Chicago Midway International Airport and 13.7 miles away from O’Hare International Airport.
Claridge House feature amenities such as a Business Center, Café, Express Check-In, Lift, Gym, Parking, Porter Service, Hotel Bar, and Conference Rooms. The property features chic, residence-inspired decor, with sophisticated rooms that are designed for serenity and feature plush, pillowtop beds, WiFi, and a spa-style shower. Property also boasts the DaVinci room, its largest event space. This versatile 685-square-foot area is adaptable for various layouts, accommodating up to 50 people in theater style, 24 in a U-shape setting, and 30 in a classroom layout. The property features The Gold Coast Spa (located on the second floor), offering guests an additional luxurious amenity.
The opportunity here, is to reposition the hotel to dramatically increase the profitability via Occupancy and ADR.
The hotel is underperforming its true potential. You are buying a beautiful high-quality asset at a great per room cost, below current constructions costs, but not the existing NOI as it needs to be repositioned, which can be done quite easily with all the recent renovations.
The sellers had invested approximately 9M in renovations in 2018.
2023 ADR: $153
2023 RevPAR: $101.62
2023 Occ%: 66.40%
Investment Highlights
STRATEGIC LOCATION
Situated in Chicago’s prestigious Gold Coast, Claridge House offers proximity to key attractions and airports, positioning it as a prime choice for travelers. The property is less than 10 minutes away from Chicago’s top attractions, including Wrigley Field, 360 Chicago, and the Lakefront Trail. It’s also close to the Magnificent Mile and Lincoln Park Zoo, with both O’Hare and Midway International Airports less than 14 miles away, ensuring easy accessibility for guests.
HISTORIC CHARM WITH MODERN AMENITIES
A 1923 establishment that was renovated in 2018, blends historic elegance with contemporary luxury, including a full-service spa, a restaurant, a fitness center and a 685 SF meeting space.
AWARD-WINNING RECOGNITION
Claridge House has earned accolades from Travel + Leisure and Conde Nast Readers’ Choice in 2020, affirming its status as a top-tier hospitality destination.
ATTRACTIVE DEMOGRAPHICS
The property is well-positioned in a densely-populated area among some of Chicago’s best restaurants, high-end boutique retail, hotels, corporate offices, and entertainment venues. It boasts some of the best demographics in the city, with 144,163 households, a population of more than 251,410, and a very high average household income of more than $149,041 within a two-mile radius.
STRONG FINANCIAL OPPORTUNITY
The property currently showcases a solid financial foundation even though underperforming its true potential. Its 2023 metrics: an Average Daily Rate (ADR) of $153, Revenue Per Available Room (RevPAR) of $101.62. The NOI can be dramatically increased via a repositioning/reflagging strategy (The opportunity), which would most likely require minimal capex given its existing quality and recent renovation.
RECORD HOTEL REVENUE GROWTH
Illinois hotels experienced record revenues in fiscal year 2023, with a notable increase of 35.8% from the previous year and a substantial 230.1% growth from 2021.
SIGNIFICANT VISITOR SPENDING
Visitors to Illinois spent $44.3 billion in the calendar year 2022, demonstrating the high economic impact of tourism and the potential for revenue generation for hospitality businesses.
EMPLOYMENT GROWTH
The Chicago-Naperville-Elgin area, which includes the Gold Coast neighborhood where Claridge House is located, has seen significant employment gains, particularly in education and health services which grew by 34,800 jobs till November 2023, indicating a robust job market and consumer spending potential.
THRIVING LOCAL ATTRACTIONS
Chicago has hosted major events such as sold-out concerts and NASCAR races, which have contributed to the city recording the
highest weekend hotel occupancy rate in history - an average of 96.8% according to reports, indicating the city’s capacity to attract large-scale events and tourism.
SUCCESSFUL MARKETING INITIATIVES
The state’s “Middle of Everything” ad campaign brought in an additional 2 million visitors and generated $1 billion for Illinois hotels, restaurants, small businesses, and attractions in the year 2023, showcasing the effectiveness of tourism marketing strategies.
ECONOMIC RESILIENCE
In 2023, Chicago’s economy demonstrated growth and resilience. Nonfarm employment in the metropolitan area rose to 4,832,300 in November from 4,789,000 the year before, aligning with a national employment increase of 1.8%. Unemployment dipped to 4.3%, slightly below Illinois’ 4.7%, indicating stability in the local job market.
Claridge House
Photo Gallery
