Lowe Enterprises Investors has completed the sale of the 319-room Motif Seattle, by Destination Hotels & Resorts, on behalf of a national hotel investment venture with The Guardian Life Insurance Company of America and a subsidiary of Allstate Insurance Company.
The Seattle Times reports the sale price at $130.7 million, a record for the Metro area.
The hotel was formerly The Red Lion on 5th Avenue and is located at 1415 5th Avenue, between Pike and Union Streets.
“The transaction is the first disposition on behalf of our venture with Guardian and Allstate and earned significant return on the original investment,” said Bradford W. Howe, co-CEO of LEI. “We continue to seek investment opportunities where we can earn solid returns for our investors by improving the physical condition and/or operations of a hotel.”
The venture acquired the property in 2011 and immediately began a $20-million multi-phased renovation, adding 22 guestrooms and increasing meeting space by 50 percent. The hotel recently exited the Red Lion franchise and was rebranded Motif Seattle.
The LEI-Guardian-Allstate venture targets well-located, full-service hotels that are of a three-star quality or greater and can be repositioned to take advantage of the market’s recovery. LEI seeks quality properties where it can improve performance through capital improvements, new marketing or management.
The venture also owns the Hotel Derek, a 314-room independent boutique hotel in the Galleria area of Houston.