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Legacy Hotels Completes $105M Acquisition of Olympic Hotel

SEATTLE-The Toronto-based REIT finances the 450-room luxury hotel acquisition through the assumption of a $44-million first mortgage and hands management to its affiliate, Fairmont Hotels & Resorts Inc. Four Seasons Hotels Inc. has managed the Downtown hotel for the past 21 years.

By Brian K. Miller | Updated on August 03, 2003

SEATTLE-Legacy Hotels has closed on its acquisition of the Olympic Hotel in Downtown Seattle. The Toronto-based REIT paid $105 million for the 450-room luxury property, financing it via the assumption of a $44-million first mortgage.

Built in 1924 and located in Downtown Seattle, the 450-room hotel features two restaurants and two lounges, an indoor pool and fitness center, high-speed Internet access in all guestrooms and 20,000 sf of meeting and event space. Four Seasons Hotels Inc. has managed the Downtown hotel for the past 21 years. As part of the acquisition, Legacy is handing the long-term management contract to its affiliate, Fairmont Hotels & Resorts, for an unspecified payment.

Legacy CFO Jerry Patava tells GlobeSt.com says the assumed mortgage is at current interest rates, but adds that the low loan-to-value ratio (41.9%) gives the company the option of a cash-out refinancing. Patava says the current capitalization rate on the investment is “in the high single digits.”

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