PORTLAND, ORE. – LaSalle Hotel Properties (NYSE: LHO) has acquired the 150-room Heathman Hotel in Portland for $64.3 million. The hotel is located at 1001 SW Broadway Street in the downtown district.
It is situated adjacent to the Portland Center for the Performing Arts. It is next door to the Arlene Schnitzer Concert Hall, which houses the Oregon Symphony.
“We are very excited about the acquisition of this special historic asset,” says Michael D. Barnello, LaSalle Hotel Properties’ president and CEO. “The Heathman Hotel is optimally located within an excellent market. Portland boasts a diverse economy, cultural sophistication and an abundance of amenities and attractions for its visitors.”
The hotel was originally built in 1927. The asset received a $6-million capitalization investment in 2008. The Company has underwritten approximately $3.0 million of capital investment in 2017 for a soft goods renovation.
The Heathman also contains 3,833 square feet of meeting space, Heathman Restaurant & Bar and the Tea Court Lounge. The Heathman Restaurant & Bar and Tea Court Lounge operate under a lease by a major third-party operator. The hotel’s catering and room service also operate under a third-party under a service agreement.
The property also leases a retail space to Cacao Chocolates, a high-end craft chocolate shop adjacent to the hotel’s lobby.
The asset will be managed by JRK Hotel Group. The seller was Taylor-Clark Inc.
Bethesda, Md.-based LaSalle Hotel Properties is a multi-operator REIT. The company owns 45 hotel upscale, full-service hotels, totaling about 11,300 guest rooms in 10 states and the District of Columbia.
LaSalle Hotel Properties’ stock price closed at $40.94 per share on Thursday, Dec. 18, up from $30.56 a year ago.