The players are so far mum on the financial details of the transaction, and neither Heathman Hotel Group president Bruce Fery nor Rim Corp. CEO Mark Burden has returned calls seeking comment. GlobeSt.com expects to make contact today, however, and will seek to add detail over the weekend.
The joint venture acquisition includes leasing the Heathman Hotel space to Portland-based upscale restaurant chain McCormick & Schmick's for at least 20 years. The Heathman name will remain, but the menu will change. Rim Corp. says it is also interested in spreading the Heathman Hotel brand to other Western cities in the next five years, including Seattle and San Diego.
When news of the negotiations broke in late July, Fery told GlobeSt.com that attorneys for both sides were working on the deal, but that financing was still an issue for Rim Corp., which has made unsuccessful advances for the Heathman in the past. At the time, no mention was made of Taylor Clark as a potential partner.
The Heathman Group, owned by the Stevenson family of Bingen, WA, owns four hotels and five restaurants. The family also runs the STS Lumber Co. in Bingen, WA. Rim Corp., based in Modesto, CA ,owns and operates 17 mid- to low-priced chain hotels in California, and is on the hunt for other Portland properties.
The upscale, 150-room hotel was built in 1927 and sits adjacent to the Portland Center for the Performing Arts, which includes the Arlene Schnitzer Concert Hall. Following a $2.5-million renovation in 1998, the hotel and restaurant brought in $11 million in revenue in 1999. Through the first six months of this year, revenue for the hotel is off between 5% and 6%, while restaurant revenue is up by a similar percentage, Fery says.
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