The President Abraham Lincoln Hotel is a twelve-story, 316-room, full-service hotel located in the heart of Springfield’s business and government center. It had recently lost its Renaissance franchise, and absent major renovations, would not be issued a new franchise from most major companies.
The Holiday Inn is a full-service hotel located at a major exit on Interstate 55, just east of St. Louis, MO. The hotel was in the last year of its franchise agreement, and there were roof and major mold issues to be dealt with.
After owners of both hotels defaulted on their state-backed loans, the properties were foreclosed upon and were operated by the State Treasurer of Illinois. The Treasurer wanted to maximize the recovery of the more than $40 million in loans between the two properties. With a desire to implement the most transparent and fair sales process, and to recover as much of the State’s investment as possible, an auction process was selected to sell the assets.
Two separate marketing programs were implemented, both focusing on regional buyers while exposing the hotels on a national and international basis as well.
Both properties sold and closed as-is with no contingencies to separate regional developers who implemented $4M and $5M property renovation programs. Both properties subsequently reopened and were flagged DoubleTree by Hilton hotels.