By Meghan Hall
A portfolio deal has closed in the Puget Sound that could give insight into how investors are viewing hospitality assets. In three separate deals that closed on September 28th, Texas-based investor The Javelin Group has acquired several WoodSpring Suites locations in Redmond, Tacoma and Tukwila. According to public records, the firm paid a combined $56.2 million for the assets. The seller was Lehi, Utah-based West77 Partners.
In the largest of the deals, The Javelin Group paid $20.328 million for the WoodSpring Suites in Redmond, located at 7045 180th Ave. NE. The Javelin Group paid about $169,400 per key for the asset. The 120-key extended stay hotel originally opened in January of 2020.
In a second transaction, The Javelin Group acquired the WoodSpring Suites Seattle Tacoma for about $19 million, or $155,737 per room. The asset is located at 11329 Pacific Hwy SW and totals 122 rooms.
In the smallest deal to close, the WoodSpring Suites Southcenter at 15637 West Valley Highway in Tukwila traded for $16.9 million, or about $153,636 per unit. The asset totals 110 rooms and opened just after WoodSpring Suites Redmond, in May of 2020.
The properties feature on-site guest laundry, fitness center, expanded laundry and other features. The hotels were part of a collaboration between West77 and WoodSprings Hotels to develop 25 different hospitality assets across the state of Washington, according to a statement by the companies.
According to West77 Partners’ website, the firm is currently developing $100 million in real estate assets, and the company focuses on research-driven investments for maximum yield. Its project history also includes the Hilton Garden Inn Seattle Bellevue Downtown, completed in 2018, WoodSpring Suites Seattle Everett, completed in March of 2017, and Washington Square, a 10.5-acre mixed-use project in downtown Bellevue.
As of this writing, The Javelin Group has not yet returned The Registry’s request for comment.