A seven-hotel airport group sold for about half its 2006 purchase price.
RLJ Lodging Trust sold seven hotels on South Cicero Avenue, beside Midway Airport, to Endeavor Hotels for $68M, The Real Deal reported Oct. 25.
The group holds 1,057 rooms, led by a 200-room Marriott and 174-room Hilton Garden Inn and Courtyard hotels.
RLJ paid $139M for the properties in 2006. The sale is roughly $64,300 per key against about $131,500 then (derived).
Endeavor borrowed $90M from Access Point Financial. The loan exceeds the price, which The Real Deal reads as a sign of planned improvements.
RLJ did not explain the sale. Chicago visitors reached about 57M in 2025, short of the 61.6M record in 2019, and business travel remains weaker than before the pandemic.
Implications: A loan larger than the price means the capital stack carries more than the acquisition: renovation, reserves or closing costs, none of which was itemized. At about $64,300 per key, replacement cost is the comparison for airport hotels; 2006 basis is not. Occupancy, RevPAR, brand status, property condition and the loan's rate and term were not reported, so price per key cannot be converted to a yield. Watch whether lenders size to the renovated asset or to the discounted price.
Key Takeaways
- The loan was larger than the price, so the price is only part of this hotel's capital stack.
- $68M for 1,057 rooms, about $64,300 per key (derived)
- $139M paid in 2006; sale is about 51% lower (derived)
- $90M Access Point mortgage, about 132% of price (derived)
- Occupancy, RevPAR, loan terms and RLJ's reason not reported
The Real Deal, RLJ Lodging Trust sells Midway hotels at major discount, Oct. 25, 2026
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