Hilton Grand Vacations Inc. (NYSE:HGV) announces it has entered into a purchase-sale agreement with Related Fund Management and The Chartres Lodging Group to acquire the top six floors of the 26-story DoubleTree by Hilton Hotel Chicago - Magnificent Mile, which will be HGV’s first property in this highly desirable market.
“Chicago is a great new market for HGV. It’s a prime destination for dining, shopping, theater, sports and entertainment, and our project is in an A+ location in a property undergoing a complete renovation,” says Mark Wang, president and CEO of Hilton Grand Vacations. “This project perfectly sums up our growth and investment strategy: new market, expanded customer access, bite-sized investment, capital-efficient deal structure and high returns.”
The DoubleTree by Hilton Hotel Chicago is situated between the Magnificent Mile and Navy Pier and located near Millennium Park, Grant Park and Chicago Theater. Owners and guests of the timeshare units will have access to the hotel’s amenities, including an outdoor, seasonal pool and patio; fitness center; business center; and on-site bar and restaurant.
The current property owner will renovate and convert 122 of the existing 500 hotel rooms into 78 studio and one-bedroom timeshare units, all according to HGV’s brand standards. HGV will acquire the inventory in phases, anticipated to begin in the second quarter of 2019. The renovations are scheduled to begin in the fourth quarter of 2018, and sales are planned to start in our on-site sales center in the second quarter of 2019.
The total project investment for HGV is expected to be approximately $54.5 million.
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