INVESTMENT HIGHLIGHTS
HUNTER HOTEL ADVISORS has been exclusively engaged to solicit offers on the 233-room, 14-story Homewood Suites by Hilton Chicago Downtown (the “Hotel” or “Property”). Situated at 40 East Grand Avenue, the Hotel benefits from its irreplaceable location just one block from the renowned Magnificent Mile commercial district and within walking distance of the Chicago River. This offering presents a rare opportunity to acquire a cash-flowing, extended stay positioned, institutional-quality asset in a privileged location within a top 25 MSA market.
The third-party managed Hotel, which is being offered with management availability, generated $13.9M in Total Revenue and $2.7M in NOI (19.4% margin) in the Trailing Twelve Month (“TTM”) period ending March 2025. Currently, the Hotel ranks 5 of 6 in its competitive set in terms of ADR and RevPAR performance, presenting a clear opportunity to drive ADR following the completion of the PIP and through a change in management. With a refreshed product and reinvigorated management strategy, and given the Hotel’s premier location, a new owner will have the opportunity to realize significant operational upside.
Offered at a fraction of today’s replacement cost in a high-barrier-to-entry market with no new supply in the pipeline, the Homewood Suites Chicago Downtown represents a compelling opportunity to acquire a well-located, Hilton-branded asset with immediate value-add potential and long-term institutional appeal given its location and physical quality.
IRREPLACEABLE DOWNTOWN LOCATION
The Hotel is strategically positioned steps from the Magnificent Mile, Chicago’s premier district for retail, dining, and entertainment, attracting nearly 15 million visitors annually. In addition to Magnificent Mile, notable nearby attractions include Eataly Chicago, the Museum of Contemporary Art, Navy Pier, and corporate headquarters such as Nike Chicago and Kraft Heinz. The downtown area is undergoing substantial development, including a $520 million initiative to repurpose office towers into residential spaces and the $7 billion “The 78” mixed-use megaproject.
SIGNIFICANT OPERATIONAL UPSIDE AVAILABLE
The Hotel achieved a RevPAR of $160 as of TTM March 2025, driving an index of 103% as a result of a 106% occupancy index and a 97% ADR index relative to its competitive set. Once the Property has a refreshed product following the completion of the Homewood Suites PIP, it will be well-positioned to drive rate given its superior branding and location. Additionally, an investor has the opportunity to increase cash flow and profitability by changing the management strategy to focus on revenue management, cost control initiatives, and operational efficiencies.
SIGNIFICANT DISCOUNT TO REPLACEMENT COST IN A HIGH BARRIER TO ENTRY MARKET
Positioned at the crossroads of the River North neighborhood and the major Michigan Avenue thoroughfare, the Hotel is situated in one of the highest barrier-to-entry urban markets in the U.S. and is offered at a significant discount to today’s replacement cost given the corridor’s strict building and zoning standards and a scarcity of developable land. These extreme development constraints have resulted in favorable supply and demand dynamics for the market as there are no new hotels currently under construction.
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ABOUT HUNTER
Hunter Hotel Advisors is the leading investment advisory firm focused exclusively on the hotel industry. Their seasoned team of investment professionals and offices nationwide consistently provide clients with optimal results in hotel brokerage, financial advisory and capital markets services of any size or complexity. With over 45 years of experience in both full and select-service single assets as well as portfolio marketing, the firm’s capacity in valuation, economic analysis, and industry relationships has allowed HUNTER to consistently maximize value regardless of market conditions.
Hunter Hotel Advisors is the founder and producer of the well-known and respected Hunter Hotel Investment Conference. Since their first conference in 1989, they have had a consistent focus on producing an educational and networking format based on real estate and finance for hotel owners.
