Luxury downtown Portland hotel bought for $108m in 2016 sells for just $6.83m a decade later in latest sign of progressive city’s ongoing decline
The Royal Sonesta hotel in downtown Portland has been bought for $6.83 million, around 94 per cent less than the $108.3 million paid for it a decade ago. The sale is part of a wider portfolio deal and comes amid continuing concerns about the city’s safety, homelessness and quality of life, although the article notes that violent offences have recently fallen from record highs.
The 221-room hotel was acquired by Laxmi Hotels Group, whose purchase also included properties in Minneapolis and Charlotte; its Minneapolis Royal Sonesta reportedly sold at a similar discount, for $5 million. Portland hotel rooms were listed from $145, while the article cites a Portland State University report recording more than 12,000 people experiencing homelessness and a 67 per cent increase between 2023 and 2025. It also says Oregon lost a net 670 residents to other states from 2020 to 2025.
In short
- Portland’s Royal Sonesta sold for $6.83 million.
- That is about 94 per cent below its 2016 price.
- The sale comes amid wider concerns over homelessness and city conditions.
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The case for
The steep resale discount, alongside concerns about homelessness, safety and population loss, can reasonably be seen as evidence that Portland’s downtown faces serious challenges that are weakening confidence in its hotels and commercial property. Supporters of this view may argue that falling violent crime does not by itself resolve wider problems with street conditions, visitor experience or the city’s ability to attract residents and investment.
The case against
A hotel’s sale price alone does not establish that a city is in decline: the property changed hands as part of a multi-city portfolio deal, and its Minneapolis counterpart reportedly sold at a similarly steep discount. The figures also offer a mixed picture, since violent offences have fallen from record highs, while homelessness and migration data have several possible causes and do not by themselves show that Portland’s policies or overall prospects are worsening.
Explained simply
The Royal Sonesta is a 221-room hotel in downtown Portland, Oregon. It was bought in 2016 for $108.3 million and has now been acquired by Laxmi Hotels Group as part of a deal that also included hotels in Minneapolis and Charlotte.
The reported sale price is far below the 2016 figure, but hotel values can change with their income, costs and the wider property market. The article places the sale amid concerns about homelessness, safety and Portland’s appeal to residents and visitors, while noting that violent offences have recently fallen from record highs.
The figures cited include more than 12,000 people experiencing homelessness in Portland and a net loss of 670 Oregon residents to other states from 2020 to 2025. These measures provide context for debate about the city’s conditions, though they do not by themselves explain the hotel’s sale price.
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