The transaction was part of a $22-million, two-hotel deal between the two companies. that included another Homewood Suites in Chesterfield, MO. Both hotels will remain Homewood Suites, and Hilton will retain the management contract. Hilton now manages some 15 Homewoood Suites for Apple Suites.

Local hotel broker Ed Dundon brokered the original development deal for the hotel with Promise Hotels, acquired last year by Hilton. He tells GlobeSt.com the Portland area is at the bottom of the trough as far as hotel investment goes, and that values will rebound over the next few years as the region recovers from overbuilding.

Dundon adds that the sale is most likely about reducing debt Hilton accumulated by buying the Promise chain. Hilton senior vice president Mariel C. Albrecht echoed that idea, saying the transaction allows the company to book a sale, reduce debt and secure long-term management and franchise contracts.

The sale reduces to five the number of corporate-owned Homewood Suites by Hilton properties. In December 2000 Hilton sold seven Homewoods for $95 million in cash, while retaining management contracts. The company currently is pursuing opportunities to sell additional Homewood properties.