Thorofare Capital has funded a $3,512,060 bridge loan for the acquisition of the Holiday Inn Chicago Southwest Countryside. Thorofare’s direct lending program allowed the sponsor to acquire the hotel through a short sale for $4,550,000, or $26,149 per key. The financing facility also included $100,000 for immediate capital improvements and an additional “earn-up” for future PIP funding. The 174-key full service hotel is situated near the intersection of Interstate 294 and Interstate 55, just off of Joliet Road in Countryside, Illinois, approximately 17 miles from downtown Chicago.

The hotel features roughly 25,000-square-feet of meeting/event space, making it one of the largest and most prominent meeting venues in SW Chicago. The space can be configured to accommodate everything from executive board meetings to weddings, formal dinners, conferences, and exhibit shows. The ballroom can accommodate up to 450 guests. Major amenities at the hotel include an Olympic-sized indoor pool, whirlpool, fitness center, business center, courtyard with gazebo, and recreational area. The hotel is also home to William Tell Restaurant, a landmark restaurant in the region.

In addition to the 174 hotel guest rooms that are currently operating, the property also comprises an additional 120 guest rooms, which were constructed as an expansion by the previous owner and are located on the same parcel as the hotel. Due to a lack of funding and minimal levels of occupancy during the recession, 120 guest rooms were taken offline in 2009 to mitigate losses. These dormant guest rooms and restaurant space illustrate an opportunity for the sponsor to increase current levels of revenue and NOI. The sponsor has an option to lease the 120 offline rooms to a senior living operator. Thorofare’s underwriting did not attribute any value towards these offline units in its valuation.

Since October 2011, the property has continued to achieve a RevPAR Index greater than 120.0%, illustrating the hotel’s overall strength and position within the market. At the time of close, the property was 61% occupied on average. According to a March 2014 STR report, the property’s YTD ADR is $102.19, which is approximately 1.7% greater than the competitive set. Additionally, the March 2014 YTD RevPar is $62.65, which is approximately 29.7% greater than the competitive set. Ultima Hospitality, a select and full service hotel owner and operator focused on identifying and executing value-add opportunities nationwide, will manage the hotel as a third party property manager. Ultima Hospitality manages over $3.5 billion in real estate investments, including Ultima’s portfolio of 11 hotels.