Hospitality investment firm WalshDupart has completed a 40.5 million dollar bridge financing for the recapitalisation of two adjacent Hilton-branded hotels in the greater Portland area in the US state of Oregon. The loan was provided by Peachtree Group. The agreement comprises an initial term of three years along with two extension options of twelve months each. The assets being financed are the 165-room Embassy Suites by Hilton Portland Hillsboro and the neighbouring 106-room Hampton Inn & Suites Portland/Hillsboro-Evergreen Park.
Strong demand in the Silicon Forest technology corridor
Both hotel operations benefit from sustained high demand in the Silicon Forest, Oregon's technology hub. The location is heavily influenced by facilities of global technology groups such as Intel and ASML. In April, a new baseball stadium for the minor-league team Hillsboro Hops also opened, bringing additional visitor traffic to the area.
Keegan Bisch, Vice President Originations and Credit at Peachtree, explained that the submarket continues to attract substantial corporate investment. This includes an advanced semiconductor manufacturing initiative by Intel and a 750 million dollar expansion by biotechnology company Genentech. Bisch highlighted that very little new supply is entering the market in this dynamic environment and that the two properties are among the best-positioned assets in the area.
- —Comprehensive accommodation offer totalling 271 units across two complementary Hilton concepts
- —Around 5,000 square feet of conference and meeting space at the Embassy Suites to cater to corporate demand
- —Strategically advantageous location on Northeast Tanasbourne Drive, around eleven miles west of central Portland
Property history and repositioning
The two properties at 9355-9399 Northeast Tanasbourne Drive were developed in 2014 by Western States Lodging & Management as a dual-branded property. WalshDupart acquired the hotels in 2023 and subsequently implemented a comprehensive refurbishment programme.
Thanks to its conference facilities, the Embassy Suites in particular records robust occupancy from corporate travellers visiting the surrounding technology and research centres. The combination of constrained new supply, upgraded physical stock and strong local industry provides the foundation for the long-term earnings capacity of the ensemble.
