Extended Stay Portfolio Sets New U.S. Price-Per-Key Record for Woodspring Brand

A five-property 596-room extended-stay hotel portfolio in Washington recently sold to SPI Hospitality LLC of Dallas. With an aggregate sale price of $88 million, the transaction sets a new U.S. price-per-key record for the Woodspring Suites brand.

The five Woodspring Suites properties are in Redmond, Tukwila, Richland, Lakewood and Vancouver, WA.

• Woodspring Suites Redmond at 7045 180th Ave. NE in Redmond
• Woodspring Suites Tukwila at 15637 West Valley Hwy. in Tukwila
• Woodspring Suites Richland at 1370 Tapteal Dr. in Richland
• Woodspring Suites Lakewood at 11329 Pacific Hwy. SW in Lakewood
• Woodspring Suites Vancouver at 200 NE 104th Ave. in Vancouver

Two of the properties were completed in 2018 (Redmond and Tukwila), two opened in late 2020 (Richland and Lakewood) and the Vancouver hotel is expected to open this month. During the height of the pandemic, the individual hotels experienced only three total months of negative net operating income out of a collective 106 months of operating history.

Matthew Behrens, Chris Burdett and Jordan Caudill with CBRE Hotels represented the seller, West77 Partners.

“This portfolio of newly completed extended-stay properties emulated the best of both a multifamily and a hotel investment by balancing risk for hoteliers and driving returns for multifamily investors,” said Behrens.

West77 Partners is currently developing other Woodspring Suites locations in Washington and Idaho, and has plans to continue growing its portfolio of economy extended stay hotels across the nation.

“We believe strongly in the economy extended stay segment, and we are actively seeking new sites for development in multiple states,” said Mike Nielson, CEO of West77 Partners.