Laxmi Hotels Group Buys Portland Royal Sonesta
The downtown Portland hotel sold for $6.8 million in October 2026, marking a significant drop from its 2016 valuation.
Updated on Oct. 28, 2026 in Commercial
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In October 2026, Laxmi Hotels Group acquired the Royal Sonesta hotel in downtown Portland for $6.8 million. This transaction was part of a larger eight-property sale package.
Why it matters
The sale highlights ongoing price depreciation and market weakness within the downtown Portland commercial real estate sector. This trend suggests that property owners may continue to offload assets at steep discounts.
The Royal Sonesta sale price reflects a 94% decrease from its 2016 valuation of $108.3 million. This transaction follows other recent hotel sales in the city, including the $30.1 million sale of the Marriott Downtown Waterfront.
The players
Laxmi Hotels Group
This investment entity was the buyer of the eight-property hotel package.
Service Properties Trust
This real estate investment trust maintains ties to the limited liability company that sold the property.
Pebblebrook Hotel Trust
This real estate investment trust previously sold the Heathman Hotel in 2023.
The details
Located at 506 S.W. Washington St., the property was sold by a limited liability company linked to Service Properties Trust. The acquisition is part of a broader shift in the city as institutional investors exit downtown hospitality assets.
Timeline
2016: The Royal Sonesta hotel was purchased for $108.3 million.
2023: Pebblebrook Hotel Trust sold the Heathman Hotel for $45 million.
Early 2026: The Portland Marriott Downtown Waterfront was sold for $30.1 million.
October 2026: The Royal Sonesta and Hotel Zags were sold.
Culture Shift
The sale reflects the broader decline of the downtown Portland commercial real estate market following pandemic-era shifts. This trend underscores a move away from long-term institutional ownership in the city center.
Frequent visitors to the downtown area may see changes in hotel management and service offerings as the new ownership integrates the property. Residents and business owners may also see continued shifts in property values for nearby commercial spaces.
The takeaway
Investors should note that hospitality assets in urban cores are currently trading at significant discounts compared to historical peak values. Those looking at commercial trends should monitor future asset disposals as indicators of continued market realignment.
Further reading
Learn more about the latest developments in the Portland Commercial sector.
Source note: This article includes information reported by Oregon Live.
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