JLL’s Hotels & Hospitality Group announced today it closed the sale of a two-hotel portfolio located in Portland, OR and Vancouver, WA.
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.”