HI-Express | 40 N Martingale Rd. | Schaumburg, Illinois

   (312) 483-2200         dealflow@equityroots.com

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Summary


Equityroots Holdings I, LLC, an Illinois Limited Liability Company

Phase I: New construction 87 room limited service Holiday Inn Express.  (Formula Blue).

Phase II: TBD.

The proposed 50,000 sq. ft., wood framed, 4-story Holiday Inn Express will have it's own front entrance and lobby while maintaining interconnectivity with its future dual brand counterpart.  The overall site design offers both brands higher operating efficiency and a better guest experience. The concept of allowing two similar use properties to share in the development and use of common amenities like swimming pools, fitness centers, and outdoor courtyards allows for larger scaled amenities and a better guest experience. The design integration allows guest from this HI-Express to the future full service hotel.

In addition to being backed by IHG’s central reservation system, the proposed development is located in a corporate business district, and just down the road from Woodfield Mall and Streets of Woodfield. Located in the north-west suburban market and surrounded by 27 million square feet of office space allows for convenient use of meeting rooms and corporate lodging.  Leisure travelers to Woodfield Mall can easily identify overnight accommodations from I-290/355/53, Chicago arteries.  Furthermore, this development is also designed to support more sports families that choose to play on Olympic Park's state of the art 72-acre synthetic turf soccer fields.  There are demand drivers and amenities for corporate & leisure travelers 7 days a week on this site.

The northwest suburban Chicago market in general is a hub for commerce, home to many corporate headquarters, and attracting major tradeshows and weddings within its boundaries. The market continues to grow as evidenced by new development activity across all sectors; retail, restaurant, hospitality, and roadway infrastructure. This project is aimed at capturing and upgrading the quality of IHG's transient travel segment in the NW suburban Chicagoland market.

Sponsored By:


Equityroots Holding I, LLC

Sponsor: Equityroots, Inc. organized this hotel development with the assistance of Intercontinental Hotel GroupMackie Consultants, and Luna Architecture + Design.  IHG designated this project as a replacement asset for an existing 230-room Holidome.

Operator: An experienced 3rd party management company with a winning track record of customer service and accountability will be selected to operate the day to day operations of this property.  There are a number of reputable national management companies that have expressed an interest to manage this property. Management team will be selected at time of starting construction.

 
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Pitch Deck


Videos

FAQ'S


Question: Is it really worth it to build a new hotel? Why don't we just purchase and renovate a existing property?
Answer:

The answer to your question depends on the market. For this particular market, the benefits of developing new hotel outweighed all else. See our blog page for a more detailed answer.


Question: Does this investment claim depreciation like I do for my own business and tax matters?
Answer: Yes, the business manager will claim depreciation on everyone's behalf and will share it pro-rata with every investor. It will reflect in the Schedule K1 that you will receive around tax time every year.

Question: Will investors start receiving a return immediately?
Answer: No you will not. This particular investment will not offer any cashflow for the first few years because the hotel will be under construction. It will distribute earnings on an annual basis when the hotel is up and running. The real-estate should also increase in value over time, which will be recognized at time of sale.

Question: Do investors receive special discounts or perks at the property?
Answer: Investors will receive special "owner" rates through the fund manager exclusively at this property. Investor privileges come with conditions and limitations further explained in the Equityroots' Owner Card.


Expected Performance

LOCATION Schaumburg, Illinois
ASSET CLASS Limited Service Hotel
EQUITY MULTIPLES 2.93X
LEVERAGED IRR 19.3 %
ADR $ 112.00
OCCUPANCY 76 %
HOLD 10 Years
STRATEGY 10 Year Hold and Disposition
MIN INVESTMENT $15,000.00
INVESTMENT TYPE Equity Interest

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