Mainebiz

V O L . X X I I I N O. X X V I I N OV E M B E R 1 3 , 2 0 1 7 6 B U S I N E S S M A I N E Business news from around the state these are my people I N V E S T M E N T M A N A G E M E N T T R U S T S E R V I C E S F I N A N C I A L A D V I C E E S T A T E P L A N N I N G N O R WAY S AV I N G S A S S E T M A N AG E M E N T G R O U P • Not FDIC Insured • No Bank Guarantee • May Lose Value PORTLAND 207. 482.7920 | AUBURN 207. 791.2110 | NorwaySavings.bank Portland's East End taking on hospitality flavor B y M a i n e b i z S t a f f P O R T L A N D — A building boom in the Old Port neigh- borhood will include a growing number of hotels. Including one hotel under construction, one that's been approved and two that are in the proposal stage, Portland could see an additional 550 hotel rooms in coming years, according to Mainebiz and other pub- lished reports. Hotels planned or in proposal for the East End and the Old Port: An AC Hotel By Marriott of 150 rooms is under con- struction on a parcel bordered by Thames, Hancock and Fore streets, across from the Ocean Gateway and next door to the future WEX Inc. headquarters. The developer is Norwich Partners Development & Investment, which has a management office in Lebanon, N.H., and a development office in Sanibel, Fla. Opening date: Hasn't been set yet. In August, West Elm Hotels, a division of the West Elm furniture retail chain, said it would open a 150- room boutique hotel at 58 Fore St., as part of the redevelopment of the Portland Co. complex. The developer will be Foreside Development Co. LLC. Opening date: 2020. The Portland Press Herald reported in early November that Richard Mielbye of Miel's Development Group in West Palm Beach, Fla., filed an application with the city to build a six-story, 128-room hotel at 203 Fore St. in Portland, on an existing parking lot and next to the downtown Hampton Inn. Status: In proposal. The former site of Rufus Deering Lumber Co., at 383 Commercial St., could become the site of a 128-room hotel and conference center, the Press Herald has reported. Status: In proposal. Existing inventory There are already 2,685 hotel rooms in Portland and 5,500 rooms in the area, according to data com- piled by Daigle Commercial Group and presented at the annual MEREDA conference. Through November 2016, average occupancy was 63.4%, an increase of 6.4% from a year earlier. The average rate charged by hotels was $133.24, an increase of 4.7%. Revenue per available room, which takes into account average occupancy and room rates, shot up 9.5%. Investors also look at potential revenue from on-site events, restaurants and retail. It should be noted that the new hotel development adds to capacity already provided by the Hampton Inn Portland Downtown-Waterfront, at 209 Fore St.; the Hilton Garden Inn Portland Downtown Waterfront, 65 Commercial St.; and the Courtyard by Marriott, at 321 Commercial St.; the Portland Harbor Hotel, at 468 Fore St.; Westin Portland Harborview, at 157 High St.; the Press Hotel, at 119 Exchange St.; the Hyatt Place Portland-Old Port, at 433 Fore. St.; and the Portland Regency Hotel & Spa, at 20 Milk St. High sale price for an existing hotel While there will likely be winners and losers with the coming wave of hotel rooms, the temperature of Portland's hotel market might be measured by the recent sale of the Residence Inn by Marriott Portland, at 145 Fore St., which ranks among the richest com- mercial real estate deals of the year — and is among the largest Maine hotel deals in recent years. The buyer, Apple Hospitality REIT Inc., a Richmond, Va.-based owner of 238 hotels, paid $55.8 million for the 179-room hotel, the real estate investment trust said in a press release. That translates to $311,000 per key for the hotel. The Residence Inn will sit between two planned corporate headquarters. WEX Inc., Maine's second- largest publicly traded company, will have several hun- dred employees at Thames and Hancock streets. The developer broke ground in October. At 16 Middle St., Tilson Technology, one of Maine's fastest growing com- panies, has its new headquarters under construction. Add to the commercial development a continual wave of new apartment and condominium buildings on Portland's East End. B R I E F

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