Hotel Investor Looks to Expand West Portfolio
The Dow Hotel Company plans to further expand its portfolio of hotels in markets with barriers to new entry and demand drivers such as in Seattle at a time when dozens of new hotels have opened in the past few years.
SEATTLE—With dozens of new hotels opened in the past few years, several urban markets are reporting a decline in occupancy rates, according to a second-quarter report by Kidder Mathews. For example, in Bellingham, which experienced a near doubling of the room supply during a five-year interval, the market occupancy rate decreased from 76% in 2012 to a 2018 estimate of 64%.
In downtown Bellevue, where six hotels have opened in the past four years, occupancy declined from 76% in 2013 to an estimated 70% in 2018. Ongoing development in South Lake Union is expected to have a similar impact, the report indicates.
Amid added supply, The Dow Hotel Company, a national hotel owner/investor and operator, plans to further expand its portfolio of full-service hotels in US markets with barriers to new entry and numerous demand generators. Those markets are to include Seattle, Portland, the San Francisco Bay Area and Southern California.
The company seeks to acquire or co-invest with joint venture partners and/or manage mid to large full-service hotels through smaller boutique/independent properties. To facilitate that expansion, Dow Hotel recently named Jackie Lee as vice president of hotel investments. In her new role, Lee will be responsible for helping grow the portfolio of large full-service hotels.
“Historically, we have focused on mid- to large-size, first-class full-service hotels and resorts, especially those with extensive food and beverage capabilities,” Murray L. Dow II, founder and president, Dow Hotel, tells GlobeSt.com. “With the addition of Jackie, we will further expand into independent, boutique and urban select-service hotels throughout the Western US, growing our portfolio throughout Southern California, the Bay Area, Portland and Seattle.”
Prior to joining the Dow Hotel Company, Lee held a number of roles with Interstate Hotels & Resorts, culminating with vice president of hotel investments. In that position, she had a key role in the management of the company’s US hotel portfolio. While there, Lee also served as vice president of strategic growth and corporate communications director/special assistant to the board for the company’s Shanghai division.
“With its aggressive growth appetite, The Dow Hotel Company is expanding further into new segments and markets, undergoing its own internal renaissance,” Lee said.
The Dow Hotel Company owns/operates eight US properties. The company’s portfolio of owned and managed properties consists of institutional-grade hotels under brands such as Marriott, Hilton, Hyatt, Embassy Suites, DoubleTree, Sheraton and Crowne Plaza. And the company currently operates US food and beverage facilities, ranging from casual dining to upscale bars/lounges with Starbucks and Tully’s coffee outlets. In addition to Masterson’s, the division’s proprietary restaurant concepts also include Basil’s Kitchen and BC Bistro.