Two-hotel portfolio in high-growth Pacific Northwest trades to new owner
JLL’s Hotels & Hospitality Group closed the sale of the 209-key extended-stay portfolio located in Washington and Oregon
JLL represented the seller, Rockbridge, to complete the sale to the confidential buyer. The hotels are both unencumbered by management.
The portfolio totals 209 keys and consists of the Homewood Suites Vancouver-Portland in Vancouver, Washington (104 keys) and the Homewood Suites Portland Airport in Portland, Oregon (105 keys).
The hotels have been well-maintained by prior ownership, undergoing $12.4 million, or an average of $59,000 per key, in capital improvements since 2016. After the initial COVID-19 shutdown, the portfolio experienced a strong and immediate rebound in performance due to their exceptional location and superior product.
In addition, the hotels are strongly positioned in key Pacific Northwest markets, with Portland being the third highest-growth city in the U.S. The hotels also benefit from nearby economic drivers, with the Homewood Suites Vancouver-Portland located adjacent from the Columbia Business Park, one of the area’s largest industrial hubs, and Downtown Vancouver. The Homewood Suites Portland Airport benefits from its proximity to the Portland International Airport. Additionally, the Airport submarket is home to 51 million square feet of office and industrial space, providing strong corporate and extended-stay demand.
The JLL Hotels & Hospitality team representing the seller was led by Executive Vice President Melvin Chu an Oregon and Washington Licensee and Senior Managing Director John Strauss.
“The extended-stay portfolio garnered strong interest from a number of different buyer groups,” said Strauss. “It’s rare to get a chance to buy a management unencumbered portfolio with excellent trailing cash-flow.”
Chu continues, “Portland remains one of the most highly sought after hotel markets in the country. We continue to see strong in-migration and employment trends in Portland, which should lead to a quick recovery.”
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totaling $83 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Rockbridge, a private investment firm with more than 20-years in business, has been investing in and building brands since 1999. The business has made over 275 real estate and hospitality investments in 38 states worth over $9.2 Billion in total capitalization and has over $2.7 Billion in assets under management. Rockbridge has built a family of hospitality, development, and management company brands, and its continued success is a result of its core Rocks: Relevance, Relationships, Resilience, and Responsibility. In 2020, Rockbridge was honored for a third consecutive year as a top, philanthropic company in Central Ohio.
Learn more at rockbridgecapital.com and Instagram.