By Meghan Hall
In recent weeks, a number of hotels across the Puget Sound have sold, and another recent transaction has been added to the mix. On June 8th, Texas-based MCR Hotels purchased a Residence Inn in Renton, Wash., for $41.75 million, or just under $286,000 per room. The seller, according to public documents, was Texas Western Hospitality.
The asset is located at 1200 Lake Washington Boulevard N. The extended-stay hotel offers 146 rooms, with fully equipped kitchens, a breakfast buffet, pull-out sofas and free wireless internet. Meeting rooms and a fitness center equipped with cardiovascular equipment and free weights, outdoor barbecue, and market are also part of the property.
“Discover the Pacific Northwest when you use Residence Inn Seattle South/Renton as your base of operations,” the hotel’s website states. “Our hotel offers a true home away from home experience.”
The property is located just off of Interstate 405, near Gene Coulon Memorial Beach Park, Mercer Island and The Landing, a shopping center anchored by a Target and Marshalls.
In recent weeks, a number of hotels have sold around the Puget Sound. Hotel 1000, in the heart of Seattle, was sold by Loews Hotels and Resorts for $55 million, or about $458,33 per room. At the beginning of June, SRM Development purchased a Bellevue hotel asset for $30 million.
However, a recent report released by CBRE shows that hotels outside the urban core, as well as extended stay assets such as the Renton Residence Inn, have fared best during the pandemic. Extended stay hotels recorded a 68 percent loss of earnings, while overall, the hotel industry saw losses of 107.6 percent. Occupancy rates for luxury and convention hotels declined by 60 percent, while extended stay hotels saw a more modest, 25 percent decline in occupancy.
While hotel performance is anticipated to remain slow in the immediate future, CBRE predicts that pent-up demand will help to renew the hospitality industry. Widespread vaccination, as well as a return to the office, are factors that are expected to work in hospitality’s favor.