The Dossier, a 205-room hotel in downtown Portland is facing a familiar foe: foreclosure. This time, the threat looms due to a lingering $60 million debt and the sluggish recovery of the city’s hospitality market.
The hotel, located at 750 S.W. Alder St. and owned by Portland Hotel LLC, a joint venture between Provenance Hotels, Gencom, and Corten, defaulted on a 2015 loan. A default notice filed by law firm Lane Powell PC states that while the borrowers owe over $60 million, they can avoid foreclosure by paying $11 million. If not, the property will be auctioned off in October, according to a report in the Portland Business Journal.
This isn’t the Dossier’s first brush with foreclosure. A similar situation arose in 2022, but the owners managed to avert the crisis by bringing the loan up to date.
The hotel’s current predicament underscores the challenges facing the hospitality industry in downtown Portland. The city’s occupancy rate lags behind most peer cities, and the average daily room rate is the lowest among them. While demand has somewhat rebounded, it remains below pre-pandemic levels.
The Dossier, originally a Westin Portland, underwent a multimillion-dollar renovation in 2017 to reposition itself as a boutique hotel. It is unclear if the 2015 loan was used to finance this transformation.
Provenance Hotels was founded by Gordon Sondland, who also served as the the United States Ambassador to the European Union from 2018 to 2020. In November 2019, Sondland testified as a witness at the impeachment inquiry against Donald Trump.
The Portland hotel market in 2024 is poised for a comeback, despite a challenging 2023, according to industry reports. Public safety concerns and an influx of new hotels had cast a shadow over the city’s hospitality industry. However, the tide seems to be turning.
The city has taken significant strides to address the issues that plagued it. Initiatives like the Hotel Security District are making headway in improving safety and curbing crime. New hotels, such as the luxurious Ritz-Carlton Hotel & Residences, are opening their doors, injecting a fresh sense of excitement into the market. And a revitalized downtown, complete with renovated public spaces, is beginning to lure visitors back.
Overall, the Portland hotel market in 2024 is a story of resilience and renewal. While challenges persist, the city is focused on safety and revitalization. These trends would be welcoming news for the ownership group.
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