Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Holiday Inn Express & Suites Lake Zurich - Barrington (‘Hotel’ or ‘Property’) located in Lake Zurich, Illinois. The IHG-branded Hotel is offered at $10,750,000 or $125,000 per key. The Holiday Inn Express & Suites Lake Zurich - Barrington is an 86-room, three-story Hotel stationed at 197 S Rand Road in Lake Zurich, Illinois. Various common area amenities at the Property include an indoor heated pool, breakfast area, fitness center, guest laundry facility, and convenience store. Lake Zurich, IL, nestled in scenic Illinois, is a charming village renowned for its serene lake, fostering a family-friendly atmosphere and vibrant community spirit. Centered around Lake Zurich, the village offers several opportunities for boating, fishing, and lakeside picnics, providing a tranquil setting for outdoor activities. Throughout the year, the village hosts an array of events, including concerts, festivals, and farmers' markets, creating a close-knit community ambiance. Nature enthusiasts can explore nearby parks like Oak Ridge Marsh Nature Park and Paulus Park, featuring hiking trails and birdwatching spots. Boating and kayaking on Lake Zurich are popular, allowing residents and visitors to savor the water's scenic beauty. Fitness enthusiasts can partake in activities such as yoga, join recreational sports leagues, or go play a round at Lake Zurich Golf Club. Lake Zurich boasts a thriving arts and culture scene, evident in local art galleries, theater productions, and music events. History enthusiasts can delve into the village's heritage at sites like the Ela Historical Society Museum, offering captivating insights into its past. Culinary delights await with a diverse range of restaurants, and food festivals, as well as farmers' markets, showcase fresh, locally sourced produce and unique dishes. The village's strong sense of community is bolstered by excellent schools, community centers, and sports facilities, fostering a nurturing environment for families. Vibrant community events like holiday parades and art fairs, coupled with engaging activities at the public library, create a cohesive neighborhood feel. Lake Zurich's proximity to attractions such as historic Long Grove Village and the Brookfield Zoo enhances its appeal. With its scenic beauty, cultural offerings, and diverse recreational activities, Lake Zurich offers a well-rounded experience for residents and visitors, making it a delightful place to live and explore. In the trailing twelve-month period ending in July 2023, the limited-service Hotel recorded room revenues of just over $2.4 million and a net operating income just over $776 thousand, or 31 percent as a percentage of total revenues, after a 4 percent capital replacement reserve and 3 percent management fee. As of August, twelve-month average RevPAR in the Lake County hotel submarket was climbing at an exceptionally strong 13.8 percent annual rate. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through.