More Than $14 Million In Renovations Planned For Deerfield Hotel

DEERFIELD, IL — The new owners of the Hyatt Regency Deerfield spent more than $30 million on the purchase and plan to invest another $14 million to renovate the 301-room hotel at 1750 Lake Cook Road, Crain's Chicago Business reported. The buyers are banking on attracting clientele from some of the eight Fortune 500 companies headquartered nearby as they reinvest in the hotel beside the I-94 and I-294 interchange.

Chicago-based Phoenix Development Partners joined in the venture by Green Door Capital, Polaris Management and Aimbridge Hospitality, which manages the hotel. CBRE Capital Markets helped secure a $32.9 million loan for the transaction, the firms announced.

Brokers who assisted in securing the loan said there were "numerous" interested lenders, which demonstrated the strength of the location and Phoenix's redevelopment strategy to turn the property into the "premier corporate and leisure option" in the area.

“We are excited to acquire this amazing asset and add it to our growing portfolio of properties,” said Phoenix Development Partners CEO John Mangel. “We are pleased to have the opportunity to work with both Hyatt and Aimbridge.”

Mangel declined to disclose how much money the hotel had been making in recent years, but told Crain's the hotel is currently renting rooms "at a discount to its competitive set." He said renovation would begin with hotel rooms and a second phase next year will include improvements to the lobby, bar and restaurant.

Most of the current Phoenix portfolio is in Wisconsin, although it also plans to build an assisted living facility in Orland Hills and a mixed used 400- to 600-unit project in the South Loop.

The Deerfield Hyatt was last purchased in 2010 by a group led by Los Angeles-based Ares Management as part of a $51 million deal that also included Hyatts in Lisle and Rosemont. According to the Lake County assessor's office, the value of the Deerfield portion of that deal was nearly $26.5 million.

Revenue from Lake County hotel rooms grew strongly between 2012 and 2016, according to Crain's, but has declined since then.

Rooms at the six-floor Deerfield Hyatt were listed available for between $98 and $160 throughout May and June.