Multnomah County Seeks to Buy or Rent Hotel Rooms for Homeless Shelters

Multnomah County is looking to rent or buy additional hotels to provide shelter for the homeless, as revealed by a solicitation to owners obtained by WW. The request was sent out by real estate broker CBRE on behalf of the county on June 11.

The letter requested expressions of interest for room block agreements or purchase of motel properties within the county for housing purposes. The ideal properties would have between 40 to 120 rooms. The county has been more inclined towards renting than buying due to the high costs involved.

The letter also inquired if property owners were interested in selling their properties to the county and if so, what their proposed purchase price would be.

So far, the county has bought two hotels: a Days Inn for $4.2 million in December 2020, and a Motel 6 for $4.9 million in July 2021. The Joint Office of Homeless Services, funded by the county and city, currently leases 416 rooms for shelter programs and has an additional 41 rooms available through a no-rent lease with Metro, the regional government.

The decision to rent or buy in the future will be determined by a lease-versus-own analysis, according to county spokeswoman Julie Sullivan-Springhetti.

Portland hotels are currently selling at low prices due to the pandemic and downtown riots affecting demand. Two large hotels went to foreclosure auction in January 2023 but failed to attract any buyers. The average hotel occupancy rate in Portland over the past year was 61.6%, below the national average of 62.8%.

The report also noted that all travel segments in Portland have struggled to regain their pre-pandemic performance, with leisure visitors opting for experiences outside the city and some downtown businesses and restaurants relocating.

Source: wweek.com

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