$78 Million Construction Loan Arranged by HFF for Development of World's First Hilton Tri-Branded Hotel Project

. February 13, 2017

CHICAGO, IL. February 13, 2017 - Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $78 million in construction financing for the development of a tri-branded Hilton hotel, which will be constructed across the street from the McCormick Convention Center in downtown Chicago, Illinois.

HFF worked on behalf of the developer, Michigan Cermak Indiana LLC and First Hospitality Group, to place the construction loan with The PrivateBank.

The 466-room tri-branded hotel will consist of a 184-room Hilton Garden Inn, a 187-room Hampton Inn and a 95-room Home2 Suites with a shared entrance, front desk and amenities, including an indoor pool, fitness room and business center. Additionally, the 21-story hotel will feature two Chicago-based restaurants and a Starbucks on the ground level, 7,000 square feet of flexible meeting space and a rooftop bar and lounge. The hotel will have direct sky bridge access into the 2.6 million-square-foot McCormick Convention Center, the largest convention center in the U.S., and will be connected to the four-story historic 2215 South Michigan building that will house a live entertainment venue. Situated on a .87-acre site at 123 East Cermak, the hotel will be constructed at the southwest corner of Cermak Road and Indiana Avenue in downtown Chicago's South Loop. The site is next door to Chicago's Motor Row District and walking distance to two different elevated train stations. The hotel will be in the developing McCormick Square sub-neighborhood and near offices, universities, hospitals, retail, restaurants and entertainment options.

The hotel will be constructed by McHugh Ujamaa LLC, which is an affiliate of James McHugh Construction Co. and Ujamaa Construction Co. Construction is underway.

The HFF debt placement team representing the borrower was led by senior managing director Michael Kavanau and managing director Danny Kaufman.

“It was a pleasure to work with the teams at McHugh Construction and First Hospitality on this exciting project,” Kaufman said. “The new hotel's connectivity to the convention center and best in class Hilton franchises will significantly improve the lodging offerings available to McCormick Place. This was a great opportunity to work with two world-class sponsors on a project that will enhance Chicago's overall competiveness in the national convention business.”

About First Hospitality Group, Inc.

First Hospitality Group, Inc. (FHG) is a leading hotel management, acquisition and development company with more than 30 years of award-winning experience. FHG's unique people-driven professional culture fosters a team of highly skilled and motivated hospitality experts who consistently deliver outstanding property level performance, as well as memorable and engaging guest experiences. Headquartered in Chicago, FHG's portfolio features 19 brands and 46 properties throughout the Midwest. Recognized in Forbes America's Best Midsize Employers 2016, FHG received a No. 28 ranking out of the 250 best midsize employers in the country, No. 1 in the travel category, and No. 3 amongst all of America's best travel companies. For more information, visit, fhginc.com.

About James McHugh Construction Co.

Since its founding, James McHugh Construction Co. has earned its reputation as a builder of landmark, one-of-a-kind structures. McHugh's success is grounded in the company's dedication to the success of its clients, its people, and the McHugh heritage. McHugh's mission has always been promoting a seamless and positive project experience with excellence and innovation. The company was founded in 1897 by James D. McHugh and by the 1920s was established as a general contractor noted for its elaborate masonry work. As it grew with the city, McHugh developed its specialties: high-rise concrete construction and complex, large-scale projects for both the private and public sectors. Learn more at mchughconstruction.com.

About Ujamaa Construction Co.

Founded in 2002 by owner and Architect Jimmy Akintonde, UJAMAA has consistently built its portfolio with successful projects and satisfied clients. The firm maintains a balance of corporate governance and social responsibility, striving to bring diversity into the work place and provide employment opportunities to the underserved. Ujamaa's scope of services includes pre-construction, design/build and design/assist services, construction management and general construction. Learn more at ujamaaconstruction.com.

About HFF

Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

Business Contact:

$78 million construction loan arranged by HFF for development of
T: (617) 338-0990
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