JLL’s Hotels & Hospitality Group has announced the sale of the Pacific Northwest DoubleTree Portfolio, consisting of six hotels across the region. JLL is the exclusive representative of the seller, The Blackstone Group, and they are represented by Mark Fain, managing director out of JLL’s Atlanta office, Mark Fraoili, senior vice president, and Melvin Chu, vice president, both out of the San Francisco office.
The six hotels are comprised of 596 rooms and have received nearly $15 million or over $24,500 per room in capital improvements between 2012 and 2015. These improvements converted the hotels to the DoubleTree brand.
Of the six DoubleTree’s offered, two are located in Washington. One DoubleTree is in Olympia at 415 Capitol Way N. and the other in Vancouver at 12712 SE 2nd Cir. The remaining four hotels span across Oregon in Beaverton, Tigard, Bend and Salem.
“The portfolio represents an opportunity to earn excellent yield on in-place cash flow,” said Fraioli. “Moreover, the assets benefit from a long-term affiliation with the industry-leading Hilton reservation system, strong local demand generators and geographic diversity within one of the nation’s fastest growing regions,” he added.
While JLL couldn’t comment on the potential price point of the six hotels, the company said they are currently in the process of marketing the portfolio. JLL also said The Blackstone Group is open to offers for the whole portfolio or independent properties, so there is a possibility it could be sold as one portfolio or sold off in pieces.
A Pacific Northwest hospitality report from Marcus & Millichap on the second half of 2016 stated that the region’s performance is strong. “Positive demographic trends are also lifting hotel performance, as numerous employment opportunities and tight labor markets in Portland and Seattle are driving a high level of relocations from outside of these metros. In addition to hotel stays for job interviews, the subsequent relocation of households often involve at least a temporary stay in hotels until permanent residences are found.”