Two new hotels planned where old one demolished in Elk Grove Village

Updated 10/14/2019 9:49 AM

Two new hotels and two restaurants are proposed to stand at a busy corner in Elk Grove Village where a shuttered motel recently was demolished.

Sunrise Retail Development LLC has announced plans for the $25 million redevelopment on 7.4 acres at the northwest corner of Oakton Street and Busse Road.


The project calls for a $7 million, three-story Country Inn & Suites by Radisson in the back corner of the site, and a $14 million, four-story Tru by Hilton hotel closer to Oakton. Both hotels would have just under 100 rooms each.

A single-story, 5,600-square-foot restaurant is planned for an outlot along Busse, as well as a single-story, 7,100-square-foot restaurant along Oakton. The types of eateries haven't yet been announced.

The village board inked a redevelopment agreement with the developer this week, agreeing to sell parcels of the land as redevelopment occurs for about $1 million total. If the developer defaults or there's other delays in construction, the village has the right to reacquire any lot for $1, under terms of the deal.

The village bought the property for $5.6 million in August 2018 and demolished the old Elk Grove Hotel last month, with an eye toward selling the site back to a developer who would redevelop the area with higher-end hotels, restaurants and public spaces.

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In the redevelopment agreement, village officials said their goal is to eliminate blight and stimulate investment in the business park.

"It's going to open up that corridor," Mayor Craig Johnson said. "It needed it for a long time."

Across the street, work crews are prepping the site of a different shuttered motel, Motel 6, for demolition, after the village bought that property for $5.3 million in May. A teardown is scheduled for October, as village officials negotiate with two different developers with a similar eye toward hospitality uses, Johnson said.

Under the agreement, construction on the proposed Country Inn & Suites must begin a year from now with completion expected by October 2021. The first restaurant building would be done a year later, and the Tru by Hilton complete by the end of 2022.

The project would still require plan reviews and approvals from the village plan commission, village board, Metropolitan Water Reclamation District and Illinois Department of Transportation.

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