Block 216 Tower - Ritz Hotel and Condos | 459'-11 1/2" | 35 floors | Complete - Page 32

PhillyPDX · #**621** Posted **Oct 4, 2022, 2:28 PM**

But surely the hotel business dynamics have changed since this building broke ground? So just asking if potential foreclosures (I'm assuming there are some structural business reasons for their inability to pay, regardless of who owns it) at all affects this one?

How much have hotel bookings rebounded since 2019? Does that affect the high end hotel market the same? I keep reading how business travel is still lower than 2019, and not being in the industry, how much does that affect the bottom line for business district hotels?

MarkDaMan · #**622** Posted **Oct 4, 2022, 4:29 PM**

Quote:

Originally Posted by PhillyPDX

But surely the hotel business dynamics have changed since this building broke ground? So just asking if potential foreclosures (I'm assuming there are some structural business reasons for their inability to pay, regardless of who owns it) at all affects this one?

How much have hotel bookings rebounded since 2019? Does that affect the high end hotel market the same? I keep reading how business travel is still lower than 2019, and not being in the industry, how much does that affect the bottom line for business district hotels?

BPM Real Estate Group and Walter Bowen are the developers and owners of the building. Should it flop and he turns the building back over to his lenders (banks), the hotel will still open, maintain a 5-star experience and the project will be completed. The operators of the hotels are very seldom the owners which is why the Hilton and Duniway are operating like normal (I just attended a 3-day conference at the Hilton), despite a cloud over ownership of the properties.

uncommon.name · #**623** Posted **Oct 4, 2022, 4:59 PM**

Quote:

Originally Posted by PhillyPDX

But surely the hotel business dynamics have changed since this building broke ground? So just asking if potential foreclosures (I'm assuming there are some structural business reasons for their inability to pay, regardless of who owns it) at all affects this one?

How much have hotel bookings rebounded since 2019? Does that affect the high end hotel market the same? I keep reading how business travel is still lower than 2019, and not being in the industry, how much does that affect the bottom line for business district hotels?

Great topic for discussion and one I'm very must invested in as a Hotelier. According to STR (Smith Travel Research), Hotel occupancy in North American averaged 62% YTD through July 2022. By comparison, our industry averaged 67% occupancy YTD through July 2019.

Now where things really get interesting is in ADR (Average Daily Rate). In 2019, hotel ADR was $132 where-as in 2022, we are averaging $149. That's a significant increase in rate for 2022 vs 2019, and enough of a rate increase that RevPAR (Revenue Per Average Room) is higher in 2022 than in 2019.

Another metric we look at is Group demand, which oddly has a lot of similarities to Business travel demands. Through 2022, we have seen Group demand rebound to near 2019 levels in many of our markets, but there is still a demand gap with business travel specifically.

Obviously you have to look at the market however and while the hotel market in a place like downtown Eugene has more than rebounded and is in-fact pushing record Occupancy/ADR, downtown Portland still lags behind considerably. There is still a very strong negative perception of Downtown Portland to travellers so we are seeing more people staying in hotels outside of the main core of the City. It is slowly returning but not nearly at the pace of most other hotel markets in North America. The high end market is doing very well, but that is also dependant on market. We have high end hotels in more rural markets that are doing incredible right now, where as some in more urban areas are closer to or below average.

CorbinWarrick · #**624** Posted **Oct 4, 2022, 5:29 PM**

Quote:

Originally Posted by 2oh1

I have no experience in the hotel industry, but based on my own corporate experience I have to assume Ritz did a lot of research in terms of their potential customer base in Portland - and their customers are at a totally different end of the market than most hotels. Significantly higher end. I have to admit, I'm surprised there's enough of a market for a Ritz in Portland, but if they've determined there is one, I'd bet on it, and I'd bet on the hotel being a success.

What I'm more curious about is the condos. In a quote higher in the page, this was posted:

Only 16 units out of 138? I'm surprised it's that low, though I assume the big push to sell units will come next year.

If they don't sell quickly, the timing could become really... interesting.

I'm expecting political violence downtown in 2024 that will be worse than what we saw in 2020. 2020 was protests in response to the killing of George Floyd, followed by the federal government's response to the protests, which led to protests about the federal response... and through it all, Portland Police was inept, ineffective, and worse, often siding with right wing militia. It was ugly. But I expect something uglier in 2024 as right wing militia try to regain political power and attack left-leaning cities in order to do so.

...which brings me back to this building...

If they don't get these units sold in the next 18 months, all I can say is Yikes.

The retail in this building has been leased, so that's good. It will be interesting to see how the office and residential units do. Convincing millionaires to move downtown would have been easier a decade ago, or better yet, 15 years ago.

I love this building and I want it to be a success, but who could have predicted their timing would be this bad?

I can almost bet the investors/developers regret breaking ground on this tower all the time these days.

Malix · #**625** Posted **Oct 4, 2022, 5:45 PM**

Quote:

Originally Posted by CorbinWarrick

I can almost bet the investors/developers regret breaking ground on this tower all the time these days.

I am not sure about that. Yes they weathered some lag in deliveries from logjams at the ports, but they were also able to secure pricing and commitments on products prior to the huge dip in the supply. Electrical, FF&E, Glass, and Equipment. If the city would have shut down construction then that would have hurt, if not killed the project. The residential market is pretty soft right now, but things are picking up, and the Ritz Carlton will be like no other hotel in Portland. If the city can step up and clean the streets, fix O'Bryant Square then vitality will certainly come back. Portlanders love the urban and gritty feel that only downtown offers. Suburbs are a good place to retreat to, but eventually you want to be where there is a buzz...a good buzz...not the buzz of zombies. The city needs to step up and give the city back to the public to enjoy.

PhillyPDX · #**626** Posted **Oct 4, 2022, 10:31 PM**

Ok. Yeah I have no grasp on hotels. Other than the logic that lower biz travel surely must impact hotel bottom lines.

Prices/revenues have gone up, but where haven’t they? Costs me $17 for bowl of ramen now, or $18 for a run of the mill burger at a pub. But I digress…

NOPO · #**627** Posted **Oct 8, 2022, 12:12 PM**

I believe it is too early to be making predictions about how fast these will sell, or whether they’ll sit empty as second homes the majority of the time. Give it time. We’ll see. I personally think it’ll be fine and I’m optimistic people will actually be living in this building as a primary residence.

PacificStates · #**628** Posted **Oct 14, 2022, 12:47 AM**

Can someone more knowledgeable on the topic confirm my interpretation of this? I'm assuming this means the buyer of one of the penthouses is having the floor plan reconfigured to their specifications.

Link is to a building permit for 1st time Tenant Improvement on penthouse 3503

https://www.portlandmaps.com/detail/...O/4855341_did/

eric cantona · #**629** Posted **Oct 14, 2022, 2:10 AM**

Quote:

Originally Posted by PacificStates

Can someone more knowledgeable on the topic confirm my interpretation of this? I'm assuming this means the buyer of one of the penthouses is having the floor plan reconfigured to their specifications.

Link is to a building permit for 1st time Tenant Improvement on penthouse 3503

https://www.portlandmaps.com/detail/...O/4855341_did/

That would be my take. But I really want to know what the utility of having a "mud room" on the 35th floor is.

maccoinnich · #**630** Posted **Oct 14, 2022, 3:18 AM**

Quote:

Originally Posted by PacificStates

Can someone more knowledgeable on the topic confirm my interpretation of this? I'm assuming this means the buyer of one of the penthouses is having the floor plan reconfigured to their specifications.

Link is to a building permit for 1st time Tenant Improvement on penthouse 3503

https://www.portlandmaps.com/detail/...O/4855341_did/

You're understanding it correctly. My understanding is that the penthouse units can be delivered as a shell, with a build to suit interior.

2oh1 · #**631** Posted **Oct 14, 2022, 8:51 AM**

Quote:

Originally Posted by eric cantona

That would be my take. But I really want to know what the utility of having a "mud room" on the 35th floor is.

I'd assume it'll be more of a utility room... the kind with storage shelves and a utility sink, where you might wash and store your overpriced bike, etc.

jb111120 · #**632** Posted **Oct 16, 2022, 2:38 AM**

MarkDaMan · #**633** Posted **Oct 28, 2022, 4:09 AM**

From earlier this evening at the Dossier Hotel.

pdxsg34 · #**634** Posted **Oct 28, 2022, 3:29 PM**

Quote:

Originally Posted by MarkDaMan

From earlier this evening at the Dossier Hotel.

Excellent photo, thanks for sharing!

subterranean · #**635** Posted **Oct 28, 2022, 4:22 PM**

Agreed, nice shot.

uncommon.name · #**636** Posted **Nov 1, 2022, 5:21 PM**

Quote:

Originally Posted by MarkDaMan

From earlier this evening at the Dossier Hotel.

Gorgeous! I'm absolutely loving this building and what it does to the skyline.

urbanlife · #**637** Posted **Nov 2, 2022, 4:38 AM**

It is definitely becoming a new favorite tower for me.

OakAngeles · #**638** Posted **Nov 4, 2022, 11:27 PM**

Been taking some pics with the fall colors coming in and managed to grab these. So far its had a fairly imposing effect on that part of town while still fitting pretty well with its surroundings imo.
Also, does anyone know if theres any plans for lighting/LED type displays around the crown? Because it certainly has a strong effect on the way the skyline looks at night and even the lit up crane has added its own neon touch.

Jakz · #**639** Posted **Nov 17, 2022, 6:14 AM**

Photos from a tour this afternoon. It was pretty cool to see it up close!

https://photos.google.com/share/AF1Q...9DQjFlWlU4TkhB

uncommon.name · #**640** Posted **Nov 17, 2022, 5:52 PM**

Quote:

Originally Posted by Jakz

Photos from a tour this afternoon. It was pretty cool to see it up close!

https://photos.google.com/share/AF1Q...9DQjFlWlU4TkhB

Wow, they are already installing FF&E for the hotel!