An Oregon hotel property in a popular beach town has recorded one of the highest sales ever in the region, another positive sign amid a recovery in hotel prices on the North Coast of Oregon. ‘Oregon.
Vesta Hospitality has purchased the Surfsand Resort & Spa from 148 W. Gower Ave. in Cannon Beach, Ore., for $58 million from Cannon Beach’s Martin Hospitality, or about $598,000 per room for the 97-room property, according to a statement from Sonnenblick-Eichner, the Beverly Hills-based investment firm , California, who brokered the sale.
The price per room was more than three times the surrounding market average, and CoStar data showed the overall price was the highest in at least five years for Cannon Beach, which census data shows has less than 2,000 inhabitants all year round. . It far exceeded the second highest, a four properties, 37 keys wallet sale which grossed $7 million.
Asked about the price of the property, Elliot Eichner, co-director of Sonnenblick-Eichner, pointed to the property’s size and proximity to sand as distinguishing factors on the state’s notoriously rocky coastline.
“It’s the only full-service hotel of its kind directly on the beach,” Eichner said, noting that many rooms have steps directly onto the beach, and adding that he believes the buyer intended to put about $100,000 per key in upgrades on the property.
The sale marked another positive sign for the entire northern Oregon Coast, where prices per key have been steadily rising since hitting a low in the throes of the pandemic earlier this year. 2021.
Average prices per key for coastal hotel properties north of Coos Bay were around $177,000 in July, according to CoStar research.
This figure had peaked at $167,000 in March 2020, before falling steadily as the COVID-19 pandemic rocked the hospitality industry nationwide, driving average sales per key on the North Coast to a nadir of $158,000 in March 2021.
Cannon Beach is one of the closest beach resorts to Portland and Seattle, with 9 miles of coastline and a large scenic rock monolith offshore nicknamed Haystack Rock, one of the largest such monoliths in the world.
Founded in 1996, Vancouver, Wash.-based Vesta has a portfolio of hotel properties concentrated in the South, Southwest, West Coast and Pacific Northwest, according to its website.