Ethika Investments LLC recently announced a capital allocation for the purchase of the Renaissance O’Hare Hotel in Chicago, marking the sixth investment from Ethika’s Diversified Opportunity Real Estate Fund. Laurus Corporation, Ehika’s affiliate, a real estate investment and development company specializing in hotel and resorts, office buildings and mixed-use properties, recently completed the acquisition of the hotel.
Located at 8500 West Bryn Mawr Avenue, the Renaissance O’Hare Hotel is situated close to the airport, adjacent to the Kennedy Expressway/Interstate 90 and in the middle of approximately 7 million square feet of Class A commercial office space, close to the corporate office parks in the Village of Rosemont.
BJ Turner, vice president capital markets for Ethika Investments, said, “The O’Hare submarket has a dynamic and diverse economic base which has exhibited resilience in current market conditions. The market RevPAR has improved by approximately 21 percent over the past 24 months and Class A office vacancy has decreased for the past seven quarters. Additionally, we are planning a $6.5 million renovation program and bringing in Concord Hospitality Enterprises as the new management company to enhance the overall guest experience and further drive future performance.”
With an estimated 9.8 million residents, Chicago is the third most populous metro area in the United States. The city has planned a $7.3 billion redevelopment of its infrastructure, including the revitalization of McCormick Place and Navy Pier, as well as new runways at O’Hare International Airport.
“This investment displays an opportunity to acquire a high-profile asset located in one of the strongest submarkets of Chicago at a significant discount to the replacement cost,” said Andres Szita, chairman & co-founder of Ethika Investments. “The Renaissance O’Hare acquisition further underscores Ethika’s ability to identify and invest in assets which display attractive returns and robust demand drivers.”