The company has partnered with Perry Capital of New York to buy the Allerton for about $70 million from FelCor Lodging LP, a subsidiary of FelCor Lodging Trust. Oxford plans to spend $10 million to renovate the property, similar to the property rehabilitation being completed on the Inn of Chicago.
"When we bought the property in February, we really exceeded our pro-forma expectations," says Robert Kline, president and co-founder of Oxford. "The success of the property turnaround motivated us to take a look at others."
He tells GlobeSt.com that another reason to make the purchases is that the convention center calendar is filling up very nicely in Chicago. "Mayor Daley has done a great job of promoting the city, and the convention center is expanding. They've also done a good job of reorganizing the convention authority. Meeting planners are considering Chicago in record numbers. You've got three legs to stand on in the hotel business, tourist, convention and business demand," he says.
Kline says the company is buying the Holiday Inn from a pension fund in January, and may also consider a major renovation there. "Our plans are to renovate and reposition. Ultimately, our investors plan on selling to recapitalize on their investment, but we don't have a timeline," he says.
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