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Pacific Hotel Plaza Trades for $14M

SEATTLE-A joint venture that includes Vancouver, BC-based Executive Inn Group Corp. and a partner of locally based Paragon Real Estate Advisors acquires the 160-room Downtown hotel with plans to invest an additional $2 million in a repositioning.

By Brian K. Miller | Updated on August 03, 2005

SEATTLE-Executive Hotel LLC has acquired the 160-room Pacific Hotel Plaza Downtown for $13.9 million. The new ownership plans to invest an additional $2 million, repositioning the property as an upscale boutique/business-class hotel, a partner in the deal tells GlobeSt.com. The LLC includes Executive Inn Group Corp., a closely held Vancouver, BC-based public company that operates the Executive Hotels & Resorts lodging chain, and Edward Hewson, a board member of the Executive Group and a founding partner of locally based Paragon Real Estate Advisors. Hewson tells GlobeSt.com that major renovations will add air conditioning to the building for the first time, improve the exterior look of the building and improve the rooms with new beds, bedding and plasma televisions. Average occupancy at the hotel is currently north of 70%. Including the renovations, the company’s all-in cost will be about $112,000 per room. Given that, Hewson says the renovations will allow it to push the hotel’s sub-$100 ADR and still undercut the competition in the immediate area, which has average rates that are currently $50 above that of the Pacific Plaza Hotel. “We’ve got one of the best locations in Downtown from a hospitality standpoint because half of the Downtown office space is to the south of us yet all the other hotels are to the north of us,” says Hewson. “If we end up with a stylish boutique at a really good value, we could do really, really well with occupancy.”Executive Hotels & Resorts has been handed the long-term management assignment. Post renovation, expected to be complete in early 2006, the property will be re-named the Executive Hotel Pacific. The current ground-floor retail tenants, Seattle’s Best Coffee location and the restaurant Jasmine, will be retained.

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