Hostmark Hospitality Group, Schaumburg, Illinois, has assumed management of the InterContinental Chicago O’Hare, which emerged from bankruptcy on November 23.
Hostmark was appointed by the new owner, Bletchley Hotel at O’Hare Field, LLC, an Illinois limited liability company. Ownership of the hotel was transferred to the new entity formed by its lenders as the property emerged from bankruptcy.
In June, a federal appeals court upheld a bankruptcy court ruling striking down River Road Hotel Partners LLC’s auction plans because it wrongly sought to bar the hotel’s lenders from offering debt forgiveness in exchange for the asset. In doing so, the judges broached the controversial topic of so-called “credit bidding” in bankruptcy auctions, taking aim at a closely watched ruling on the matter that came down last year. In a credit bid, a company’s lenders purchase assets by forgiving debt they’re owed rather than paying cash.
“There was uncertainty about future ownership and management as the hotel struggled in bankruptcy for the past two years, but those legal proceedings are behind us,” said Peter Connolly, Executive VP of Operations and Development, Hostmark Hospitality Group.
Located in Rosemont, Illinois, the InterContinental O’Hare has 556 guestrooms, including 70 suites, and more than 53,000 square feet of event/meeting space. Hostmark has retained nearly all of the hotel’s 200 associates.