Pheasant Run Resort is going out of business, and the property is set to be auctioned off next month.
According to the website ten-x.com, the 56-year-old resort based in St. Charles will be sold in an online auction set for Jan. 27 through Jan. 29.
Bidding starts at $2 million, and bidders must pony up $25,000 to participate.
Ten-X says that “prestigious international hotel brands” — including DoubleTree, Delta, Crowne Plaza, Clarion and Wyndham — have shown interest. The website describes the iconic Chicago-area resort-hotel’s 18.3-acre site as “an extraordinary lodging investment opportunity.”
The hotel includes 293 rooms and suites across 16 floors with a diverse selection of lodging accommodations.
The website says a public-private partnership “with significant Tax Increment Financing application” is under consideration by city of St. Charles officials.
The property’s upsides are considerable, including “future rebranding/conversion and potential redevelopment opportunities,” excellent accessibility in the East/West Corridor submarket and location in an affluent area with “dense demographics proximate to all primary area demand generators.”
According to an article in the Kane County Chronicle, the resort had gone into foreclosure in 2011, was bought by a group of investors in 2014 and has been managed by Schaumburg-based Hostmark Hospitality Group.
An article in the Daily Herald said Hostmark had announced plans last month to lay off nearly 150 employees as part of a restructuring.
According to the city of St. Charles website, there are also three commercial sites available across from Pheasant Run Resort. The three lots surround the Hilton Garden Inn on the east side of St. Charles and are zoned BR — Regional Business District, which allows a wide variety of retail, institutional and general uses.
- Iconic Chicago area resort-hotel positioned on a 18.3-acre site offering an extraordinary lodging investment opportunity
- Consists of 293 spacious rooms and suites across 16 floors with a diverse selection of lodging accommodations
- Significant upside for owner/operator/investor looking to maximize profits through new operational strategies while planning for redevelopment
- Future value enhancement through future rebranding/conversion and potential redevelopment opportunities
- Prestigious International Hotel brands have shown interest, including DoubleTree, Delta, Crowne Plaza, Clarion and Wyndham
- Public Private Partnership (PPP) with significant Tax Increment Financing (TIF) application is under consideration with the City of St. Charles
- Positioned in an affluent area with dense demographics proximate to all primary area demand generators
- Excellent accessibility in the Western East/West Corridor Submarket only 10 miles west of the I-355
SOURCE: Ten-X Commercial websites