CHICAGO, July 26, 2013 /PRNewswire/ -- Laurus Corporation, a U.S.-based private real estate investment and development firm, has announced the acquisition of the Renaissance O'Hare Hotel in Chicago, Illinois. The 362-suite upscale property is located on a 3.08-acre lot three miles from O'Hare International Airport, one of the busiest travel hubs in the country transporting more than 66 million people per year, and is situated in one of the most prominent office markets in Chicago. Opened in 2005, the 15-story hotel features more than 15,000 square feet of meeting space and amenities, including a fitness center, business center, pool, concierge and an airport shuttle.
In addition to its highly visible location near the airport and adjacent to the Kennedy Expressway/Interstate 90, the Renaissance O'Hare is positioned amid approximately 7 million square feet of Class A commercial office space in the O'Hare submarket and close to the corporate office parks in the Village of Rosemont. The Renaissance O'Hare attracts a steady base of corporate, group and leisure demand from the surrounding office complexes, which include the corporate headquarters for U.S. Cellular, True Value Hardware and Wilson Sporting Goods, and the Donald E. Stephens Convention Center and Allstate Arena.
The third most populous metro area in the United States with an estimated 9.8 million residents, Chicago has seen steady, significant job growth. The State's technology sector alone added 3,361 jobs in 2012 making it the eighth largest "cyber state" in the U.S. A planned $7.3 billion redevelopment of the city's infrastructure will include the revitalization of McCormick Place and Navy Pier, and new runways at O'Hare International Airport. According to a recent study, Chicago is on track to become one of the 10 most economically competitive cities in the world and is poised to become a more global city.
"The Renaissance O'Hare is a high-profile asset in one of the best submarkets in the Chicago. With the strong absorption in the office market and rapid recovery in the area's convention business, the property is positioned for tremendous RevPAR growth going forward," said Jean Paul Szita, President and Chief Financial Officer of Laurus Corporation. "This property marks the sixth capital allocation from Laurus' Ethika fund and displays an opportunity to acquire an asset at a significant discount to the replacement cost."
A $6.5 million renovation program will further drive future performance. Renovations will include a complete refresh of guestrooms and corridors, food and beverage outlets and the hotel's 5,000-square-foot ballroom.
"The property's newness, the strength of its location and the opportunity to implement both operational and physical improvements to the asset has made this another compelling investment opportunity for Laurus," said Austin Khan, Chief Investment Officer. "We are bringing in Concord Hospitality Enterprises as the new management company, whom we work with on several of our properties, and they will be laser focused on enhancing the guest experience and driving bottom line performance for our investors."
The hotel is located at 8500 W. Bryn Mawr Avenue, Chicago, IL 60631.
Laurus Corporation is a real estate investment and development company that specializes in hotels and resorts, office buildings, multifamily and mixed-use properties. Laurus employs an entrepreneurial investment strategy designed to consistently achieve attractive risk-adjusted returns by creating capital appreciation opportunities through repositioning, restructuring, re-development and intensive post acquisition asset management. It is affiliated with Ethika Investments, LLC, a real estate private equity firm.
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SOURCE Laurus Corporation