Group Pays $31M for Holiday Inn Select

NAPERVILLE, IL-The Harp Group, Mid-America Development Partners and AMC Delancey Group Inc. have teamed to buy a Holiday Inn Select here for $31.5 million, considered below replacement cost. Located at 1801 Naper Blvd., the 426-room hotel with 27,000 sf of meeting space is next to Freedom Commons, Harp Group’s 25-acre retail and restaurant development.

The Atlanta-based partnership that sold the hotel marketed the property quietly, says Molinaro Koger managing director John Jameson, whose company brokered the sale. “It became apparent early in negotiations that The Harp Group and Mid-America Development Partners would be the most likely buyer for getting the transaction completed in a timely manner due to their vast knowledge of the western suburbs,” he adds.

The hotel will undergo renovations, according to the new owners, hoping to target both the leisure and business markets once the project is completed, says Harp Group president Peter G. Dumon. Once the renovation is complete, Chicago-based Portfolio Hotels & Resorts will manage the property. Their assignments include the 200-room Everlee Hotel in the city’s Lincoln Park neighborhood as well as two properties in northwest suburban Des Plaines, a 144-room LaQuinta Inn and 260-key Hilton Suites.

While Harp Group is based in Chicago and Mid-America Development Partners is headquartered in Oak Brook, AMC Delancey is a Philadelphia-based company. The group used Andrew Benioff of Philadelphia-based Remington Financial Group as its investment banker. Financing came from Anglo Irish Bank.