By Meghan Hall
A hospitality property not far from downtown Bellevue has been purchased by a well-known regional developer as the city continues to grow. In a deal that closed on May 27th, Spokane, Wash.-based SRM Development purchased the Silver Cloud Inn for $30 million. The seller of the property was an entity affiliated with Bellevue Silver Cloud Inn LLC, public records state.
The asset is located at 10621 NE 12th Street. King County parcel data shows that the site totals about 1.23 acres and is developed with a 40,642 square foot structure built in 1989. The hotel features a mix of amenities, including free parking and complimentary breakfast, fitness center, printing services and laundry facilities.
“Across the street from a quiet neighborhood park, The Silver Cloud Inn Bellevue – Downtown hotel is perfect for guests who enjoy jogging or walking in this picturesque setting,” the hotel’s website states. “Within walking distance of the heart of Bellevue’s business district, our Bellevue hotel is just three blocks from the renowned upscale Bellevue Square and Lincoln Square Shopping Centers with fine shops and restaurants and six blocks from Meydenbauer Center.”
It is unclear what SRM Development’s plans are for the property, as no files are currently on file with the City of Bellevue for redevelopment. The Silver Cloud brand has a number of other hotel properties in the area, including in downtown Seattle and the University District, Tacoma, Portland and Mukilteo.
Over the past several months, hotel fundamentals have begun to improve as hopes for widespread vaccination and both business and leisure travel rise. While by the end of the first quarter occupancy and revenue remained below pre-pandemic levels, the industry has shown improvements.
Across King and Snohomish counties, market demand for hotels was down by an average of 52 percent from the previous fiscal year. By the end of March 2021, that margin had narrowed to 31 percent. Additionally, the year-over-year reduction in room prices decreased from 40 percent to 32 percent by the end of the first quarter.
“It is not your imagination: the performance of hotels in and near Seattle is improving,” states a recent report released by brokerage firm Kidder Mathews. “We are moving in the right direction.”
While most investors continue to wait on the sidelines, few sales continue to close. Most deals to close were smaller, independent properties or limited services hotels, with prices averaging between $45,000 to $90,000 per room. Other hospitality properties, including the Bellevue Sheraton, have traded hands as plans for redevelopment form. In April, New York City-based Tishman Speyer purchased a property that included the Sheraton for $152.5 million. According to Kidder Mathews, the site of the Bellevue Red Lion is also being considered for redevelopment.