Plans for two new hotels in Elk Grove Village hampered by pandemic

  • Plans for a $7 million, three-story Country Inn & Suites by Radisson hotel on the northwest corner of Oakton Street and Busse Road in Elk Grove Village have been abandoned due to the pandemic, officials said. Another hotel and two restaurants were also planned on the site.

    Plans for a $7 million, three-story Country Inn & Suites by Radisson hotel on the northwest corner of Oakton Street and Busse Road in Elk Grove Village have been abandoned due to the pandemic, officials said. Another hotel and two restaurants were also planned on the site. Courtesy of Elk Grove Village

 
 
Updated 10/28/2020 6:03 PM

What's left of a shuttered motel at a busy corner in Elk Grove Village will be demolished, after a developer who planned to renovate and add onto it for a new hotel is backing out of the project due to the COVID-19 pandemic, officials said.

That also means the original plans for a second hotel and restaurants at the northwest corner of Oakton Street and Busse Road also are dead.

                                                                                                                                                                                                                       
 

"Nobody's financing hotels. Nobody's financing restaurants. Nobody's financing anything," said Mayor Craig Johnson, though he hinted at prospects for future commercial development on the 7.4-acre site that, for now, will remain in the village's hands.

"We're looking for opportunities to expand that space," he said.

The village inked a redevelopment agreement with Sunrise Retail Development LLC just over a year ago, agreeing to sell parcels of the land as redevelopment occurs for about $1 million total. But if the developer were to default or if there were other delays in construction, the village had the right to reacquire any lot for $1, under terms of the deal.

The agreement called for shovels to be in the ground already on a $7 million, three-story Country Inn & Suites by Radisson, using a portion of the former Elk Grove Motel, which was partially removed.

Future phases proposed a $14 million, four-story Tru by Hilton hotel along to Oakton, and single-story outlot restaurants along Oakton and Busse. Each hotel would have had just under 100 rooms each.

by signing up you agree to our terms of service
                                                                                                                                                                                                                       
 

The village bought the property for $5.6 million in August 2018, with an eye toward stimulating investment in the nearby business park.

But because of the pandemic's effect on the hospitality industry, the developer has pulled back on all new construction for the foreseeable future, officials said.

That led the village board Tuesday to approve a contract with Des Plaines-based Albrecht Enterprises to finish the demo job it started in the summer of 2019.

0 Comments
                                                                                                                                                                                                                       
 
Article Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.