LaSalle Hotel Properties Acquires The Heathman Hotel in Portland for $64.3 Million
December 19 2014 - 10:13AM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) today announced that it
acquired The Heathman Hotel in Portland, Oregon for $64.3 million.
The Company funded the acquisition with cash on hand.
Grand Suite (Photo: Business Wire)
Surrounded by corporate and leisure demand generators, the
150-room hotel is located at 1001 SW Broadway Street in the heart
of downtown Portland among the city’s concentration of office
towers, retail offerings, dining establishments and entertainment
venues. The hotel’s location within Portland’s central business
district places its guests within a short walk of several regional
corporate headquarters including those of Wells Fargo Bank and
Charles Schwab. The property is located adjacent to the Portland
Center for the Performing Arts and next door to its Arlene
Schnitzer Concert Hall, which houses the Oregon Symphony. The
Heathman Hotel is also one block from the flagship store for
Columbia Sportswear and within a short walk of Nike’s flagship
location. The hotel’s guests are able to walk to many other
attractions, including the Portland Art Museum, Pioneer Place Mall,
the Pearl District, and the acclaimed Powell’s City of Books. Local
academic institutions include Portland State University, which is
just a few blocks away from The Heathman Hotel and Oregon Health
& Science University, which is within 2.5 miles.
“We are very excited about the acquisition of this special
historic asset,” said Michael D. Barnello, President and Chief
Executive Officer of LaSalle Hotel Properties. “The Heathman Hotel
is optimally located within an excellent market. Portland boasts a
diverse economy, cultural sophistication and an abundance of
amenities and attractions for its visitors.”
Portland, Oregon benefits from a strong, diverse economy, with
plentiful leisure and corporate demand generators and consistent
weekday/weekend demand. Several top-tier companies have established
major offices in the area, including Intel (17,000 employees), Nike
(6,000 employees) and Wells Fargo (5,000 employees). The city is
home to a diversity of industries including legal, banking, retail,
active wear, clean technology, software, manufacturing and
education.
Downtown Portland has boasted strong growth over the past
several years.
HISTORICAL PERFORMANCE: PORTLAND - CBD Year
ADR growth Occ.
growth RevPAR growth 2010
0.9% 6.7%
7.7% 2011 4.8% 3.9%
8.8% 2012 7.1%
2.5% 9.8% 2013
7.5% 3.3% 11.1%
October 2014 YTD 11.3%
1.4% 12.9% Source: Smith Travel Research
The Heathman Hotel is an historic property, constructed in 1927.
The asset has been well maintained, with $6.0 million invested from
2008 to present. The Company has underwritten approximately $3.0
million of capital investment in 2017 for a soft goods
renovation.
The hotel’s 150 guestrooms average 411 square feet and include
40 suites. The property has 3,833 square feet of meeting space,
with the capability to accommodate receptions of up to 200 guests
and seated banquets of up to 150 guests. The property has received
consistent accolades with inclusion on Conde Nast’s 2014 “List of
the Best Hotels in the Pacific Northwest”, Travel + Leisure’s “Top
Hotels List” and “Best Hotels of 2014” by U.S. News and World
Report, among several other awards. The Heathman Hotel has also
garnered fame for being showcased in the popular novel, “Fifty
Shades of Grey.”
The Heathman Restaurant & Bar, the hotel’s signature dining
outlet, serves locally sourced fare, including free-range meats
from Oregon farms and wild-caught seafood from the waters of the
Pacific Northwest. The historic Tea Court Lounge is an original
feature of the hotel. The lounge’s warm décor includes firelight
from a marble fireplace and the outlet features live jazz from
Wednesday to Saturday night. Both the Heathman Restaurant & Bar
and Tea Court Lounge are operated under a lease by a major
third-party operator. The hotel’s catering and room service are
also operated by a third-party under a service agreement.
The property also leases a retail space to Cacao Chocolates, a
high-end craft chocolate shop located adjacent to the hotel’s lobby
on the corner of Broadway and Salmon Streets.
The Library is a space located on the mezzanine level and
contains a collection of over 2,500 signed books authored by Nobel
and Pulitzer Prize winners, U.S. Poet Laureates and two U.S.
Presidents. The collection is accessible Monday through Thursday
between 5:00 and 7:00pm, along with complimentary wine.
The Heathman Hotel was purchased fee simple. The asset will be
managed by JRK Hotel Group, which also manages The Roger in
Manhattan and Villa Florence in San Francisco on behalf of the
Company.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 45 hotels. The properties are
upscale, full-service hotels, totaling approximately 11,300 guest
rooms in 14 markets in ten states and the District of Columbia. The
Company focuses on owning, redeveloping and repositioning upscale,
full-service hotels located in urban, resort and convention
markets. LaSalle Hotel Properties seeks to grow through strategic
relationships with premier lodging companies, including Westin
Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging
Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, White Lodging Services
Corporation, Commune Hotels and Resorts, Davidson Hotel Company,
Denihan Hospitality Group, the Kimpton Hotel & Restaurant
Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels
& Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate
Hotels and Access Hotels & Resorts.
For additional information or to receive press
releases via e-mail, please visit our website at
www.lasallehotels.com
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20141219005583/en/
LaSalle Hotel PropertiesBruce A. Riggins or Kenneth G. Fuller,
301-941-1500
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