PORTLAND, OR—LaSalle Hotel Properties has acquired The Heathman Hotel 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 at 1001 SW Broadway Street in the heart of downtown Portland among the city's concentration of office towers, retail offerings, dining establishments and entertainment venues. The hotel's location within Portland's central business district places its guests within a short walk of several regional corporate headquarters including those of Wells Fargo Bank and Charles Schwab. The property is located adjacent to the Portland Center for the Performing Arts and next door to its Arlene Schnitzer Concert Hall, which houses the Oregon Symphony. The Heathman Hotel is also one block from the flagship store for Columbia Sportswear and within a short walk of Nike's flagship location.

“We are very excited about the acquisition of this special historic asset,” said Michael Barnello, president and CEO 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 $6.0 million invested from 2008 to present. The company has underwritten approximately $3.0 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 property has received consistent accolades with inclusion on Conde Nast's 2014 List of the Best Hotels in the Pacific Northwest, plus Travel + Leisure's Top Hotels List, and Best Hotels of 2014 by U.S. News and World Report, among several other awards. The Heathman Hotel has also garnered fame for being showcased in the popular novel, Fifty Shades of Grey.

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 is an original feature of the hotel.

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 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 LaSalle Hotel Properties.

The company owns 45 hotels. The properties are upscale, full-service hotels, totaling approximately 11,300 guest rooms in 14 markets in ten states and the District of Columbia.