Sale of Five Properties Marks a New Price-Per-Key Record for Woodspring Suites Brand
SEATTLE – Nov. 1, 2021 – CBRE announced the sale of a five-property, 596-room, extended-stay hotel portfolio in the state of Washington to SPI Hospitality, LLC, of Dallas. Matthew Behrens, Chris Burdett and Jordan Caudill with CBRE Hotels represented the seller, West77 Partners. The five Woodspring Suites properties are in Redmond, Tukwila, Richland, Lakewood and Vancouver, Wash. With an aggregate sale price of $88 million, the transaction sets a new price-per-key record for the Woodspring Suites brand in the U.S.
“This portfolio of newly completed, extended-stay properties emulated the best of both a multifamily and a hotel investment by balancing risk, for hoteliers, and driving returns, for multifamily investors,” said Mr. Behrens, first vice president, CBRE. The portfolio included:
- Woodspring Suites Redmond, located at 7045 180th Avenue NE in Redmond, Wash.
- Woodspring Suites Tukwila, located at 15637 West Valley Highway in Tukwila, Wash.
- Woodspring Suites Richland, located at 1370 Tapteal Drive in Richland, Wash.
- Woodspring Suites Lakewood, located at 11329 Pacific Highway SW in Lakewood, Wash.
- Woodspring Suites Vancouver, located at 200 NE 104th Avenue in Vancouver, Wash.
Two of the properties were completed in 2018 (Redmond and Tukwila), two opened in late 2020 (Richland and Lakewood), and the Vancouver hotel is expected to open in November. The individual hotels have experienced only three total months of negative net operating income, due to the COVID-19 pandemic, out of their collective 106 months of operating history.
West77 Partners is currently developing other WoodSpring Suites locations in Washington and Idaho and has plans to continue growing its portfolio of economy extended stay hotels across the nation. “
We believe strongly in the economy extended stay segment, and we are actively seeking new sites for development in multiple states,” said Mike Nielson, CEO of West77 Partners.
The U.S. hotels sector posted record performance gains in the second quarter of 2021, according to CBRE research. Nationally, demand increased by 100.8%, occupancy gained 97.5%, revenue per available room jumped 180.5% and the average daily rate grew by 42%.
“Extended-stay hotels outperformed other hotel asset types throughout COVID-19, resulting in a wide pool of investor interest in the offering from the hotel and multifamily sectors,” added Mr. Burdett, executive vice president, CBRE.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.