Axilla Capital Structures Financing for Hyatt Lisle Acquisition

BLOOMFIELD HILLS, MI—Axilla Capital, LLC, has arranged a $13-million first mortgage and mezzanine loan to finance the acquisition of the Hyatt Lisle in Lisle, IL. The loans represent 80% of the hotel’s total acquisition costs and the interest rate was fixed for 10 years. Joel Mazur, managing principal of Axilla Capital, originated the transaction and secured the financing.

The Hyatt Lisle is a full-service hotel that opened in 1988. The 13-story property features 317 rooms, a restaurant & lounge and 11,031 sq. ft. of meeting space. The hotel recently underwent an extensive $8-million renovation, including upgrades to the guestrooms, building exterior, corridors and public space.

“This was a complex transaction because the hotel is still in a state of transition,” says Mazur. “While the asset generates significant revenue, the prior owner was operating the hotel on a thin margin.”

According to PKF Consulting, the average labor costs at full-service hotels amounts to 45% of a hotel’s total operating expenses and 33% of its revenue. Mazur claimed that “the Hyatt was operating well in excess of these market standards.”

The Hyatt Lisle is located in the western Chicago suburb of Lisle, directly south of the intersection of Corporetum Dr. and Warrenville Rd. The property is served by Chicago O’Hare International Airport, which is located approximately 13 miles to the northeast. Businesses in the area include Alcatel-Lucent, Aramark, PNC, McCain Foods Limited, Navistar International Corporation, Molex and Sun Coke Energy.