T
he Residence Inn in Redmond, Washington was recently sold to Clearview Hotel Capital for $34 million, a significant decrease from the $48 million Blackstone Real Estate paid for it ten years ago. The six-story hotel, which boasts 180 rooms, is located within Fairbourne Properties' Redmond Town Center and is approximately two miles away from Microsoft's headquarters, one of the largest employers in the Seattle metro area with over 44,000 workers. The deal represents a 30% cut from Blackstone's initial investment and equates to approximately $190,000 per room.

    This sale marks one of several exits Blackstone has made from the hospitality sector in the Seattle area. Another unit of the New York-based private equity firm sold off a Hilton Garden Inn in Reno and a TownePlace Suites by Marriott in Kent earlier this year. Meanwhile, BRE Hotels & Resorts, another Blackstone unit, continues to hold a Hampton Inn & Suites in Federal Way within its portfolio.

    Clearview Hotel Capital's purchase of the Residence Inn marks a return to the Seattle market after selling the Vintage Hotel in downtown Seattle to Kimpton Hotel & Restaurant Group in 2012 for $32 million, five years after purchasing it for $22 million.

    Extended stay hotels have faced a more challenging recovery from the pandemic due to the widespread adoption of remote work technology like Zoom. However, industry players have observed signs of a rebound this year, indicating a potential shift towards more traditional travel arrangements once again.