BETHESDA, Md.—LaSalle Hotel Properties has acquired The Heathman Hotel in Portland, Ore., for $64.3 million. The company funded the acquisition with cash on hand.
Surrounded by corporate and leisure demand generators, the 150-room hotel is located in downtown Portland among the city’s concentration of office towers, retail offerings, dining establishments, and entertainment venues.
“We are very excited about the acquisition of this special historic asset,” said Michael D. Barnello, president and chief executive officer of LaSalle Hotel Properties. “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 Heathman Hotel is an historic property, constructed in 1927. The asset has been well maintained, with $6 million invested from 2008 to present. The company has underwritten approximately $3 million of capital investment in 2017 for a soft goods renovation.
The hotel’s 150 guestrooms average 411 square feet and include 40 suites. The property has 3,833 square feet of meeting space, with the capability to accommodate receptions of up to 200 guests and seated banquets of up to 150 guests.
The Heathman Restaurant & Bar, the hotel’s signature dining outlet, serves locally sourced fare, including free-range meats from Oregon farms and wild-caught seafood from the waters of the Pacific Northwest. The historic Tea Court Lounge, which features live jazz performances, is an original feature of the hotel. Both the Heathman Restaurant & Bar and Tea Court Lounge are operated under a lease by a major third-party operator. The hotel’s catering and room service are also operated by a third-party under a service agreement.
The property also leases a retail space to Cacao Chocolates, a high-end craft chocolate shop located adjacent to the hotel’s lobby on the corner of Broadway and Salmon Streets.
The Library is a space located on the mezzanine level and contains a collection of over 2,500 signed books authored by Nobel and Pulitzer Prize winners, U.S. Poet Laureates, and two U.S. Presidents.
The Heathman Hotel was purchased fee simple. The asset will be managed by JRK Hotel Group, which also manages The Roger in Manhattan and Villa Florence in San Francisco on behalf of the company.
