RLJ Midway-area portfolio (7 hotels)
Ask about thisOnly 2 of 5 factors could be graded; insufficient public data. Replacement cost not graded (price includes a restaurant parcel with no public allocation); spread not graded (no trailing-12-month cap rate or NOI disclosed); supply not graded (no dated room count or pipeline share public).
Public-data underwrite. The buyer's information set was larger. Decision support, not a recommendation.
- Price
- $68Mrecorded price, as reported in the press; includes a restaurant parcel
- Price per key
- $64k per key
- Keys
- 1,0577 hotels, as reported in the press; not confirmed by the company
- Buyer
- Endeavor Hotels (Vishal Thakkar)
- Seller
- RLJ Lodging Trust (RLJ)
- Announced
- Oct 25, 2026
- Status
- Close reported by press, not company-confirmed
Grade at announcement
As of Oct 25, 2026Price and basis
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Price per key vs replacement cost per key 30% | Not graded | Not graded: the $68M recorded price includes a restaurant parcel with no public allocation, so price per key isn't comparable. The blended replacement cost ($249,350 per key) is context only. | None (not graded) |
Price per key vs replacement cost per key 30%Not graded: the $68M recorded price includes a restaurant parcel with no public allocation, so price per key isn't comparable. The blended replacement cost ($249,350 per key) is context only.Not graded
Not graded: the $68M recorded price includes a restaurant parcel with no public allocation, so price per key isn't comparable. The blended replacement cost ($249,350 per key) is context only.
None (not graded)
Cited figures shown for reference. They don’t enter the grade.
Price per key vs replacement cost per key
- Blended HVS replacement cost: $249,350 per key (Marriott at full-service; Hilton Garden Inn and Courtyard at select-service; Hampton, Holiday Inn Express, Fairfield and Sleep Inn at limited-service). No ratio: the $68M includes a restaurant parcel with no public allocation. source · Jul 13, 2026
Operating performance
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Implied cap rate vs 10-year Treasury spread 25% | Not graded | No trailing-12-month cap rate or NOI disclosed (reported only in the press; no RLJ filing). | None (not graded) | |
| Demand trajectory 15% | 3 | Lodging tax receipts -2.81% (trailing 12 months vs prior 12, Village of Bedford Park hotel tax (cash), calendar 2025 vs 2024, the latest full year published; $6,081,591 vs $6,257,174) | 3 = down under 5% | RecordJun 30, 2026 (opens source)+ Village of Bedford Park FY2024 audit, CY2024 hotel tax (Illinois Comptroller copy; PDF created Jun 11, 2025) |
Implied cap rate vs 10-year Treasury spread 25%No trailing-12-month cap rate or NOI disclosed (reported only in the press; no RLJ filing).Not graded
No trailing-12-month cap rate or NOI disclosed (reported only in the press; no RLJ filing).
None (not graded)
Demand trajectory 15%3
Lodging tax receipts -2.81% (trailing 12 months vs prior 12, Village of Bedford Park hotel tax (cash), calendar 2025 vs 2024, the latest full year published; $6,081,591 vs $6,257,174)
Band: 3 = down under 5%
RecordJun 30, 2026 (opens source)+ Village of Bedford Park FY2024 audit, CY2024 hotel tax (Illinois Comptroller copy; PDF created Jun 11, 2025)
Cited figures shown for reference. They don’t enter the grade.
Implied cap rate vs 10-year Treasury spread
- 10-year Treasury par yield, Oct 23, 2026 close: 5.00% (prior trading day; Oct 25 was a Sunday). No qualifying cap rate, so no spread is computed. source · Oct 23, 2026
Demand trajectory
- The seven deal hotels alone: −2.77% ($3,956,993 vs $4,069,572), calendar 2025 vs 2024; matched by brand and location. source · Jun 30, 2026
Access: airlift and drive (not a rubric factor; no weight)
- Airlift (preliminary): Chicago Midway (MDW) passengers, calendar year to date Jan to Aug 2026, +2.36% (year-to-date fallback; total used as printed). source · Oct 20, 2026
- Drive, context only: Illinois Tollway transactions, H1 2026: +2.49%; none of the 1,057 keys is served by the Tollway (all seven hotels are reached via I-55, which is untolled). source · Aug 19, 2026
Financing and material risks
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Supply backdrop 15% | Not graded | No dated room count or pipeline share for the Midway submarket was public by Oct 25, 2026. | None (not graded) | |
| Debt and transaction context 15% | 4 | Arm's-length, no distress reported, but one recorded price covers seven hotels plus a restaurant parcel with no public allocation (The Real Deal, Oct 25, 2026, from Cook County records). | 4 = Arm's-length, no distress, but the structure blurs the price signal: portfolio-allocated price, loan assumption or seller financing, earn-out or contingent consideration, partial-interest or JV recapitalization | PressOct 25, 2026 (opens source) |
Supply backdrop 15%No dated room count or pipeline share for the Midway submarket was public by Oct 25, 2026.Not graded
No dated room count or pipeline share for the Midway submarket was public by Oct 25, 2026.
None (not graded)
Debt and transaction context 15%4
Arm's-length, no distress reported, but one recorded price covers seven hotels plus a restaurant parcel with no public allocation (The Real Deal, Oct 25, 2026, from Cook County records).
Band: 4 = Arm's-length, no distress, but the structure blurs the price signal: portfolio-allocated price, loan assumption or seller financing, earn-out or contingent consideration, partial-interest or JV recapitalization
Cited figures shown for reference. They don’t enter the grade.
Supply backdrop
- Mattoni Group's Midway Airport site: plans under review for a hotel complex; no room count or opening date. source · Mar 14, 2025
Debt and transaction context
- Cited context only: RLJ bought the properties for $139M in 2006, and the buyer used a $90M mortgage (press report citing Cook County records). source · Oct 25, 2026
Weights of ungraded factors are spread across graded ones.
Rubric v1 (original), graded Oct 26, 2026: Insufficient public data
replacement cost not graded; spread not gradeable (no trailing-12-month cap rate or NOI disclosed); 2 of 5 factors graded; insufficient public data.
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Price per key vs replacement cost per key 30% | Not graded | Not graded: the $68M recorded price includes a restaurant parcel with no public allocation, so price per key isn't comparable. The blended replacement cost ($249,350 per key) is context only. | None (not graded) | |
| Implied cap rate vs 10-year Treasury spread 25% | Not graded | No trailing-12-month cap rate or NOI disclosed (reported only in the press; no RLJ filing). | None (not graded) | |
| Supply backdrop 15% | Not graded | No dated room count or pipeline share for the Midway submarket was public by Oct 25, 2026. | None (not graded) | |
| Demand trajectory 15% | 3 | Lodging tax receipts -2.81% (trailing 12 months vs prior 12, Village of Bedford Park hotel tax (cash), calendar 2025 vs 2024, the latest full year published; $6,081,591 vs $6,257,174) | 3 = down under 5% | RecordJun 30, 2026 (opens source)+ Village of Bedford Park FY2024 audit, CY2024 hotel tax (Illinois Comptroller copy; PDF created Jun 11, 2025) |
| Debt and transaction context 15% | 4 | Arm's-length, no distress reported, but one recorded price covers seven hotels plus a restaurant parcel with no public allocation (The Real Deal, Oct 25, 2026, from Cook County records). | 4 = Arm's-length, no distress, but the structure blurs the price signal: portfolio-allocated price, loan assumption or seller financing, earn-out or contingent consideration, partial-interest or JV recapitalization | PressOct 25, 2026 (opens source) |
Price per key vs replacement cost per key 30%Not graded: the $68M recorded price includes a restaurant parcel with no public allocation, so price per key isn't comparable. The blended replacement cost ($249,350 per key) is context only.Not graded
Not graded: the $68M recorded price includes a restaurant parcel with no public allocation, so price per key isn't comparable. The blended replacement cost ($249,350 per key) is context only.
None (not graded)
Implied cap rate vs 10-year Treasury spread 25%No trailing-12-month cap rate or NOI disclosed (reported only in the press; no RLJ filing).Not graded
No trailing-12-month cap rate or NOI disclosed (reported only in the press; no RLJ filing).
None (not graded)
Supply backdrop 15%No dated room count or pipeline share for the Midway submarket was public by Oct 25, 2026.Not graded
No dated room count or pipeline share for the Midway submarket was public by Oct 25, 2026.
None (not graded)
Demand trajectory 15%3
Lodging tax receipts -2.81% (trailing 12 months vs prior 12, Village of Bedford Park hotel tax (cash), calendar 2025 vs 2024, the latest full year published; $6,081,591 vs $6,257,174)
Band: 3 = down under 5%
RecordJun 30, 2026 (opens source)+ Village of Bedford Park FY2024 audit, CY2024 hotel tax (Illinois Comptroller copy; PDF created Jun 11, 2025)
Debt and transaction context 15%4
Arm's-length, no distress reported, but one recorded price covers seven hotels plus a restaurant parcel with no public allocation (The Real Deal, Oct 25, 2026, from Cook County records).
Band: 4 = Arm's-length, no distress, but the structure blurs the price signal: portfolio-allocated price, loan assumption or seller financing, earn-out or contingent consideration, partial-interest or JV recapitalization
After the deal
Tracked separately. Not part of the grade.
- T0 · at announcementOct 25, 2026
- T+1Lands Oct 2027
- T+2Lands Oct 2028
Sources (5)
- RecordVillage of Bedford Park FY2025 audit (hotel tax by month, by hotel)
- RecordDaily Treasury par yield curve rates, 10 Yr (prior trading day close used)
- PressHVS U.S. Hotel Development Cost Survey 2026 (Exhibit 6, median total incl. land)
- PressRLJ Lodging Trust sells Midway hotels ($68M, from Cook County records)
- PressSyndicated copy (buyer financing, prior price)
Sources (5)
- RecordVillage of Bedford Park FY2025 audit (hotel tax by month, by hotel)
- RecordDaily Treasury par yield curve rates, 10 Yr (prior trading day close used)
- PressHVS U.S. Hotel Development Cost Survey 2026 (Exhibit 6, median total incl. land)
- PressRLJ Lodging Trust sells Midway hotels ($68M, from Cook County records)
- PressSyndicated copy (buyer financing, prior price)