Overview
HREC Investment Advisors (HREC IA) is pleased to offer for sale the leasehold interest in the
146-room Extended Stay America Premier Suites Portland North (“Hotel” or “Property”) located in Portland, OR.
The Extended Stay America Premier Suites Portland North represents a strategic acquisition opportunity in a growing market. Ideally situated near the Oregon-Washington border and the Columbia River, the Property benefits from its proximity to both Portland and Vancouver. Furthermore, the Hotel is located adjacent to the historic Vanport area, a former wartime city with a unique past.
North Portland presents a dynamic and diverse commercial environment. Established residential neighborhoods such as University Park foster a strong sense of community, while Mississippi Avenue pulsates with trendy shops, art galleries, and a burgeoning culinary scene. The proximity to the Columbia River and the Portland International Raceway further strengthens the area’s appeal, attracting businesses that cater to a variety of interests. From logistics hubs near the Portland International Airport to research facilities near the university, North Portland offers a strategic location for the Hotel.
Investment Highlights
Brand Conversion Allows for Greater RevPAR Capture
The previous competitive set for the Best Western was performing at a RevPAR of <$65. According to the Portland/Vancouver extended stay STR trend report, similar assets to the ESA typically achieve a RevPAR of >$110. The new ESA Premier Suites is expected to surpass the adjusted competitive set’s RevPAR, as it is the newest inventory in over a decade and has recently completed a two-year, $3.5 million renovation in June 2024.
Located in High Traffic Volume Airport Submarket
The Property highly benefits from its airport submarket location. Located seven miles away from the Portland International Airport, the Hotel captures strong and stable demand. The PDX Airport had 16.4 million passengers in the May 2024 TTM and saw an 11.3% increase in passengers in 2023 compared to the year prior. Additionally, PDX is currently undergoing a $2 billion sustainable renovation, doubling the size of its main terminal. According to Travel + Leisure magazine’s 2021 World’s Best Awards, PDX secured the #1 spot among Top 10 Domestic Airports.
Benefits from Portland’s Robust Economy
Portland Oregon is the most populous city in the state, with over 650,000 residents. Its economy supports nearly 370,000 jobs across various industries, none of which dominate more than 16 percent of the workforce. Key sectors include health care, social assistance, professional services, scientific and technical services, and retail trade. Portland is also home to more than 21 universities providing higher education opportunities.
Offered Unencumbered by Management
The Property will be offered unencumbered by a management agreement. A new owner/operator has the opportunity to revamp the operational strategies of the Hotel, implement strategic cost control initiatives, and employ more aggressive revenue management strategies.
Leasehold Interest
Offered Well Below Replacement Cost
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