By Meghan Hall
A South Korean investor has sold off a Bellevue hotel, closing on a deal that is equal to the amount the firm purchased the asset for several years prior. In a deal that closed July 1st, Aju Hotels and Resorts sold the AC Hotel by Marriott for $87 million, or about $371,795 per room. The buyer, according to public records, is an entity affiliated with Provo, Utah-based Dynamic City Capital.
The asset is located at 208 106th Place NE in downtown. The hotel totals 234 rooms and operates as a boutique hotel inspired by Spanish and European design. The property features a fitness room with free weights and cardio equipment and a cocktail lounge and bar. Six event rooms totaling 4,127 square feet, as well as four break-out rooms, are also on-site.
“The AC Hotel Seattle Bellevue is a brand of the world-class hotel brand Marriott Family, located in Bellevue, Seattle, near the headquarters of global IT companies,” states Aju’s website.
The hotel is steps away from Bellevue Plaza, Nordstrom and Macy’s, Bellevue City Hall and Lincoln Square North. Shops and restaurants ranging from Safeway to Maggiano’s Little Italy and Japonessa Sushi are all located nearby.
Aju Group originally purchased the property in 2018–for $87 million. At the time, it was the firm’s fourth acquisition in the United States. Established in 1987, Aju Hotels and Resorts is a subsidiary of Aju Group. The company specializes in investment, development and management of both domestic and international hotel properties.
At the end of the first quarter, market demand for hotels was down by 30 percent. The amount of discounts has also declined from 40 percent to 32 percent, according to data released by Kidder Mathews.
“It is not your imagination: the performance of hotels in and near Seattle is improving. Occupancy and revenue remain well below pre-pandemic levels, but the gap is beginning to narrow. We are moving in the right direction,” states the report.
Until recently, most hotels that have sold were smaller sales or independent properties, with sales prices ranging from about $45,000 to $90,000 per room. The sale of the AC Hotel by Marriott, as well as others, is considered a positive sign. In June, MCR Hotels purchased a Renton Residence Inn for $41.8 million, or $286,000 per room. Also last month, Loews Hotels and Resorts Sold Hotel 1000 in downtown Seattle for $55 million, or $458,333 per room. The deals signal institutional capital’s return to the market after a tumultuous 2020.