Another Big Hotel Deal in Seattle

SEATTLE—The pending sale of Hotel 1000, reported Tuesday in GlobeSt, is not the only blockbuster hotel deal to take place in Seattle recently.

The Seattle Times says the 310-room Motif Hotel, a former Red Lion, in downtown Seattle sold late last week for $130.7 million, or nearly $410,000 a room. It was the highest price ever paid in the metro area, the paper says.

But that deal couple be eclipsed by that of Hotel 1000, which is expected to bring $63 million or about $525,000 a room, according to a report in The Wall Street Journal.

Provenance Hotels, a hotel owner and operator based in Portland, OR, and Thayer Lodging Group, a privately-held hotel real estate investment company based in Maryland, have partnered to acquire the 120-roomHotel 1000.

The Times says the record sale prices bode well for the city's hotel market.

For the first time in at least 25 years, downtown-occupancy rates are expected to exceed 80%, which means room rates could climb until new hotels open.

Connecticut-based Cornerstone Real Estate Advisers bought Motif Seattle from Los Angeles-based Lowe Enterprises.

“The transaction is the first disposition on behalf of our venture with Guardian and Allstate and earned significant return on the original investment,” Bradford Howe, co-CEO of Lowe Enterprises said in a statement. “We continue to seek investment opportunities where we can earn solid returns for our investors by improving the physical condition and/or operations of a hotel.”

The venture acquired the property in 2011 and immediately began a $20 million multi-phased renovation, adding 22 guest rooms and increasing meeting space by 50 percent. The hotel recently exited the Red Lion franchise and was rebranded Motif Seattle, making it the largest independent hotel in downtown Seattle. Lowe affiliate Destination Hotels & Resorts continues to manage the property.

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