Key Points

  1. Endeavor Hotels acquired a portfolio of seven hotels near Midway International Airport from RLJ Lodging Trust for $68 million.
  2. The purchase price is a 50% discount from the original purchase price of $139 million in 2006.
  3. Endeavor Hotels plans to invest in property improvements as part of its business plan.

Why Endeavor Hotels Got a Bargain on Midway Hotels

Endeavor Hotels, led by Vishal Thakkar, acquired a portfolio of seven hotels near Midway International Airport from RLJ Lodging Trust for $68 million. This is a significant bargain, as the original purchase price of the hotels in 2006 was $139 million.

The hotels in question include a Marriott, a Hilton Garden Inn, and a Fairfield Inn, among others. They were previously owned by the Weglarz family, who developed the properties and assembled the land for the recently completed Wind Creek Casino in the south suburbs.

At a Glance

Main CompanyEndeavor Hotels
Acquired the Midway hotels portfolio
Main ExecutiveVishal Thakkar
Principal of Endeavor Hotels
OrganizationRLJ Lodging Trust
Seller of the Midway hotels portfolio
LocationMidway International Airport
Location of the acquired hotels
Key Financial Figure$68 million
Purchase price of the Midway hotels portfolio
Key Date2006
Original purchase price of the Midway hotels portfolio
TransactionAcquisition
Type of transaction

Behind the Deal: RLJ Lodging Trust and Endeavor Hotels

Behind the Deal: RLJ Lodging Trust and Endeavor Hotels

The deal is a sign of the ongoing challenges in the hotel industry, particularly in the business travel segment. Despite a rebound in tourism in Chicago, hotel values have not recovered, and business travel remains suppressed.

Endeavor Hotels plans to invest in property improvements as part of its business plan, which suggests that the company is looking to increase the value of the properties over time.

What This Means for Hotel Investors and Operators

This deal is a reminder that hotel values are still depressed, particularly in the business travel segment. For hotel investors and operators, this means that there may be opportunities to acquire properties at discounted prices.

However, it's also worth noting that the hotel industry is still recovering from the pandemic, and business travel remains suppressed. As a result, hotel values may take time to recover.