Dive Brief:
- New York-based hotel owner-operator MCR acquired Hyatt Regency O’Hare Chicago, the company announced Wednesday. Hyatt Hotels and MCR both declined to share the terms of the deal.
- The hotel, which underwent a $13 million renovation of its guest rooms in 2020, is MCR’s first Hyatt Regency, and its fifth property in Illinois.
- The sale is part of Hyatt’s ongoing strategy to sell owned properties and “reinvest the proceeds in asset-light platforms that accelerate growth,” a Hyatt spokesperson told Hotel Dive. Earlier this year, the hotel company sold Hyatt Regency Orlando for $1 billion.
Dive Insight:
The 1,095-room Hyatt Regency O’Hare Chicago is located five minutes from the Chicago O’Hare International Airport and is connected by skywalk to the 840,000-square-foot Donald E. Stephens Convention Center, which, according to MCR, “hosts a full calendar of events,” including the International Gem and Jewelry Show, the Illinois Bridal and Wedding Expo and the Chicago Sports Spectacular.
The hotel is also situated within a corporate hub that has more than 18 million square feet of office space and hosts the headquarters of US Foods, Wintrust, the Big Ten Conference and Reyes Holdings, per MCR. It’s also near shopping and leisure destinations such as the Fashion Outlets of Chicago, Rivers Casino Des Plaines, the Rosemont Theater and the Allstate Arena.
The property includes three dining options: full-service Red Bar & Lounge, breakfast buffet and lunch restaurant O’H American Grill and coffee-and-pastries shop Perks To-Go. The hotel also offers 110,000 square feet of meeting space, including a top-floor reception venue with views of the Chicago skyline.
MCR’s franchise agreement is effective as of Dec. 10, a Hyatt spokesperson said.
Hyatt’s asset-light capital allocation strategy has been in place since 2017. In 2021, Hyatt further committed to disposing of $2 billion in assets — a goal it surpassed after selling Hyatt Regency Orlando in August. The Florida hotel, Hyatt’s fourth-largest, globally, by room count, is also adjacent to a convention center.
In a third-quarter earnings call in October, Hyatt CEO Mark Hoplamazian said the company’s asset dispositions since 2021 had led to gross proceeds of $2.6 billion, and that Hyatt expects to continue to reduce its hotel ownership. “[W]e are actively engaged in other discussions and expect to sell more hotels in 2025 and beyond,” he said.
