Double Tree Out, Hotel Indigo on Way In

PALATINE, IL-The 195-room Double Tree Club Hotel at 920 E. Northwest Hwy. will be transformed into a Hotel Indigo, a Intercontinental Hotels Group brand. The conversion will come with the help of a $4-million mezzanine loan arranged by Boston-based Tremont Realty Capital, LLC.

“The additional mezzanine financing allowed the borrower to renovate and re-flag the asset into a new boutique Indigo concept,” says Tremont Realty Capital senior director Michael Hart. The 36-month loan, coupled with an existing $7-million mortgage, created new financing at 85% loan-to-cost, Hart adds, eliminating the need to take on partners.

The hotel, on four acres at the entrance to I-290/Route 53, was acquired by its current owner in 2001, according to property records. Among its competitors is the 429-room Sheraton Chicago Northwest, recently acquired by Denver-based Sage Hospitality Resources for nearly $20 million.