By Meghan Hall
A Holiday Inn Express under construction in Bellevue has traded hands. According to public records, Spokane, Wash.-based SRM Development purchased the property for $32.5 million in a deal that closed on December 21st. The seller is NBK LLC, an entity affiliated with Puget Sound Hospitality.
The property is located at 991 118th Ave SE. According to a listing for the property, the asset totals 150 rooms and sits on just over two acres. Construction is expected to be completed by September of 2022. However, SRM Development may have gotten the property at a discounted price; listings show that the original asking price for the development was $52.5 million.
The new hotel will be located off of Interstate 405, near the MErcer Slough Nature Park and Bellefields Trailhead. Downtown Bellevue, which has become a major hub for tech companies and construction, is just a few minutes’ drive north.
Despite the challenges posed by the recent pandemic, experts seem hopeful about the future of hospitality. The summer proved productive for the asset class, thanks to vaccinations and “restless kids,” according to a third quarter report released by Kidder Mathews.
The brokerage firm reported that occupancy rates increased in every market evaluated, hitting 62.8 percent, and lodging demand during Q3 exceeded that of 2019, pre-pandemic. The average room rate also rose from $113 per night during Q3 of 2020 to $162 per night. Daily RevPAR, which declined to $31 during the pandemic, rebounded to $101, according to Kidder Mathews’ report.
Demand was mostly the result of leisure travel. Throughout winter, however, that demand is expected to ebb. While historically business travel and convention activity would fill the gap, companies are continuing to delay in-person events, limiting business demand. Thus, hospitality recovery may remain limited in the coming months.