Sonesta Hotels in Seattle Sell to Local Company

Three Sonesta hotels in the Seattle region have sold for a combined $42 million.

Trimark Hospitality Group bought the Sonesta Select at 14615 Northeast 29th Place in Bellevue and two neighboring hotels in Renton, the Sonesta Select at 200 Southwest 19th Street and Sonesta Simply Suites at 300 Southwest 19th Street, the Puget Sound Business Journal reported.

The seller was Newton, Massachusetts-based real estate investment trust Service Properties Trust. An affiliate of the trust acquired the hotels in separate transactions in 1995 and 2001 for a total of $31.6 million. The sales price for the portfolio was 34 percent below the $64 million assessed value of the properties.

Trimark Hospitality Group, a subsidiary of Trimark Property Group, owns and operates approximately 20 properties in seven states, mostly on the West Coast and in the Southwest.

Service Properties Trust originally acquired the properties from entities related to Marriott International. In its second-quarter earnings report, the trust said it had entered agreements to sell 114 of its hotels for a combined total of $920 million, according to the Business Journal. The company expected the sales to close in the third and fourth quarters.

The proceeds from the sales are slated to go toward repaying debt, including the firm’s outstanding amounts under its revolving credit facility and debt maturing next year. The company’s “strategy” involves “divesting select hotels while focusing [its] retained portfolio on primarily full service, urban and leisure-oriented properties,” CEO Chris Bellotto said on the company’s most recent earnings call.

The Sonesta Select in Bellevue contains 152 rooms and is located near Microsoft’s Redmond campus, Redmond Town Center and Bellevue Square. The two Sonesta locations in Renton were developed in 2000 and have a combined total of 251 rooms.

As of June 30, Service Properties Trust held 200 hotels in its collection, including seven hotel properties in Washington state.

— Chris Malone Méndez