New Schaumburg hotels to replace Rolling Meadows Holiday Inn
A full-service Holiday Inn and adjoining Holiday Inn Express will join the existing Marriott on Martingale Road in Schaumburg as they take over the role from the aging Holiday Inn Rolling Meadows on Algonquin Road in the local hotel market.
Schaumburg trustees approved the village's 31st and 32nd hotels Tuesday after hearing some debate between their developer and a representative of the Marriott next door as to whether they would help or hurt that local market.
Last year, village officials themselves commissioned a study by the Chicago-based firm HVS to determine whether the pending proposal for two more hotels would oversaturate the market.
The consultants concluded the two hotels could be considered on their own merits, despite a slightly negative impact on demand from 2018 to 2020 that would then even out.
But Jill Hare, area director of sales and marketing for the Marriott at 50 N. Martingale Road, argued that the study was already outdated due to more suburban companies moving to Chicago and even Zurich North America moving farther away in Schaumburg.
"We're effectively stealing from each other because there's no new demand," she said of the local hotel market. "Adding more rooms only increases that."
But Bhavik Dani, dealflow organizer for Chicago-based EquityRoots, said the intent of the Holiday Inn project is to replace the 250 rooms of the more than 40-year-old hotel at 3405 W. Algonquin Road in Rolling Meadows with only 182 rooms that better demonstrate today's standards.
The Rolling Meadows rooms already have to be offered at a discount and thus lower the asking price for everyone else in the market, Dani said. The new rooms in Schaumburg won't do that.
"It's beneficial for the entire market to replace this old supply," he added.
Dani could not say exactly when the new hotels would open or the Rolling Meadows Holiday Inn would close.
He conceded that the old building could become a new, renovated hotel under different ownership or be entirely repurposed for something like an assisted living facility.
But even if a new hotel did arise, it would have a more positive impact on the local market than the current Holiday Inn does, Dani said.