Walker & Dunlop Arranges $92 Million Refinance for Hiltons at McCormick Place
Walker & Dunlop, Inc. announced today that it arranged $92 million to refinance the Hiltons at McCormick Place, a 23-story, 466-key tri-branded hotel connected to the McCormick Place Convention Center in Chicago, Illinois.
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Hiltons at McCormick. Photo Credit: Walker & Dunlop
Walker & Dunlop New York Capital Markets, led by Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Dustin Stolly, Jordan Casella, and Cole Grims, arranged the loan on behalf of McHugh Enterprises, Inc. and First Investors, LLC, with Access Point Financial Inc. providing the capital for the floating rate, interest only loan.
Jay Morrow and Carter Gradwell of Walker & Dunlop Hospitality partnered alongside the Capital Markets team to advise McHugh Enterprises Inc. and First Investors, LLC throughout the process.
The Hiltons at McCormick Place is the first and only tri-branded Hilton select-service property in the United States, combining Hilton Garden Inn, Hampton Inn, and Home2 Suites offerings. This innovative concept unites two of Hilton's leading upscale select-service brands with one of the industry's fastest-growing extended-stay concepts. Guests enjoy two hotel-operated food and beverage outlets, three fully leased ground-floor food and beverage offerings, an indoor pool, a state-of-the-art fitness facility, as well as ease of direct access into the McCormick Place Convention Center via an attached skybridge.
Situated in Chicago's South Loop, the property is adjacent to and connected with McCormick Place, the largest convention center in North America and the Western Hemisphere. The convention complex welcomes approximately 3 million visitors annually generating over $2.3 billion in annual economic impact. This prime location positions the Hiltons to capture a robust convention group base while further attracting a complementary mix of business and leisure travelers alike.
"The Hiltons at McCormick Place is a highly efficient hospitality investment, delivering strong cash flow and outperforming its submarket peers running a +120% revenue per available room (RevPAR) Index," said Appel, senior managing director at Walker & Dunlop. "Performance is driven by surging Convention Center demand and the exceptional recovery & forward momentum of the Chicago Central Business District hotel market, which has seen a 13% year-over-year RevPAR increase."
"As a long-time stakeholder in this property, McHugh Enterprises Inc. is proud to see the Hiltons at McCormick Place continue to thrive," said Patty McHugh, chairman and owner of McHugh Enterprises and affiliated companies. "Built by our general contracting arm, James McHugh Construction Co., this project holds special meaning for our team. We appreciate the steady partnership and expertise Walker & Dunlop brought to the refinancing process."
In 2024, Walker & Dunlop's Capital Markets team sourced over $16 billion from non-Agency capital providers. The same year, Walker & Dunlop's Hospitality team completed more than 24 unique hospitality transactions worth nearly $1.4 billion. This vast experience has made them a top advisor on all asset classes for many of the industry's top developers, owners, and operators. To learn more about Walker & Dunlop's broad financing options, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE:WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
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