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WestCoast Hospitality Repositioning for Growth

SPOKANE, WA-In early 2000, the company doubled its hotel chain through a major acquisition. Its latest plans call for the reallocation of $70 million in assets to debt reduction and continued expansion of its hotel and real estate management arms.

By Janet Parker | Updated on June 04, 2001

SPOKANE, WA-WestCoast Hospitality Corp. says it will sell off $70 million of non-core real estate assets as part of a five-year plan that includes doubling of the number of properties in its hotel chain. Proceeds from the sale of various non-core real estate, including office, retail and raw land, will be utilized primarily for the payment of debt, says Stephen Barbieri, VP and COO for the publicly traded company.

Some, however, will be earmarked for expansion of one of the company’s three branches, its hotel chain. As to WestCoast’s growth strategy, “We will look at opportunities to construct or purchase existing properties, but our primary source of growth will be through franchises and management contract,” Barbieri tells GlobeSt.com. In some cases, the company may participate in “sliver ownership,” taking up to a 20 percent interest.

While WestCoast intends to remain as the primary tenant, a key property slated for disposition is its 100,000 sf six-story headquarters, the WHC Building at 201 North River Drive in downtown Spokane. A second Spokane office property to be sold is the 235,000 sf Crescent Building at 707 W. Main St. Unlike the headquarters, which was built sometime in the 1980′s, the seven-story Crescent is a redeveloped historic building originally built in the early 1900′s. The third major property up for sale is a shopping mall in Kalispell, Mont. largest assets WestCoast will sell. Bill Palmer, heading a group with the Sacramento office of CB Richard Ellis, will broker the deals these properties.

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