LOCATION
Burr Ridge, Illinois
PROJECT HIGHLIGHTS
Hotel Asset Review
TIF district restructuring
Public-private partnership
178-room full service hotel
Southwest suburb of Chicago with unique demographics
Successful development of the hotel occurred
PROJECT DESCRIPTION
Johnson Consulting was engaged by Commonwealth Hotels to provide a market and financial feasibility study regarding the prospective purchase of an under-construction, but failed development of a 178-room hotel in Burr Ridge, Illinois.
The hotel development construction process was halted when the original development could not make debt and contractor payments. This occurred despite the fact that the Village of Burr Ridge had created a TIF district around the corporate park in order to assist the hotel. The bank then auctioned off the loan. Johnson Consulting was engaged by the winning bidder, Commonwealth Hotels, to determine the feasibility of the hotel and to make recommendations about restructuring the project. Our report was used by the developer, the Village, and lending institutions to reposition and execute the project.
After studying the half-built hotel, the TIF district, the market, and running four separate financial scenarios, it was recommended that the property have a full-service brand name, include a high-end nationally-branded steak restaurant with an outside entrance, and a reconfigured banquet and meeting space to meet the demands of the market.
