Daily Herald File Photo/By Paul Beaty The CoCo Key Water Resort and the Sheraton Chicago Northwest are closing next week. CoCo Key opened less than three years ago, and cost $25 million to build.
Daily Herald file photo
Arlington Heights will face an unexpected and major vacancy among its hotel offerings, when the Sheraton Chicago Northwest closes its doors next week.
Barring a last-minute rescue, the 14-story hotel at 3400 W. Euclid Ave., as well as the 65,000-square-foot indoor CoCo Key Water Resort, will cease operation at 5 p.m. Dec. 28.
Arlington Heights Mayor Arlene Mulder said she received confirmation about the closing over the weekend from the hotel manager. The hotel employees were notified Friday, the manager told Mulder.
The Sheraton was planning to close, but Mulder said a purchasing group was ready to buy the hotel and operate it under a new flagship. However, the group was unable to secure the loan necessary to close the deal.
The village, at its committee of the whole meeting tonight, was supposed to consider a transfer in the liquor license to accommodate the new management. That item has been pulled from the agenda.
"It's extremely disappointing for the village of Arlington Heights to get this news," Mulder said. "With the addition of CoCo Key, it was obviously trying to broaden its market appeal."
CoCo Key opened in January, 2007, at a cost of $25 million.
As the largest hotel in Arlington Heights, the Sheraton's closure amounts to a huge loss for the village in terms of sales tax revenues and jobs.
"It's a major employer and certainly one of our major hotels," Mulder said. "It was a shock to all the personnel, and I feel badly for all of the employees."
The village itself held its annual Hearts of Gold ceremony there, and Mulder said her daughters had their wedding receptions there as well.
Sales, hotel, food and beverage taxes comprise 33 percent of the village's general fund.
"It's going to hurt us," said Trustee Helen Jensen.
Mulder said she will meet with the manager either this week or next to discuss the situation.