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Governor Hotel in downtown Portland acquired by Texas developer

May 3rd, 2012 in

Source: The Oregonian

By Jeff Manning

Portland-based Provenance Hotels and Woodbine Development Corporation, a large Dallas, Texas, developer, have purchased the Governor Hotel in downtown Portland.

Woodbine has been looking at the Governor for months. In recent weeks, it brought in Portland-based Provenance as a 50 percent partner and operator of the local property.

Provenance also owns the Hotel Deluxe and the Hotel Lucia in Portland.

Provenance’s Bashar Wali said the new owners are planning to refurbish the hotel later this year. “The rooms and the lobby need some refreshing,” he said.

The transaction has historical significance for Provenance co-owner Gordon Sondland. He tried unsuccessfully to buy the hotel early last decade, an attempt that led to a memorable legal face-off with Portland developer Marty Kehoe.

The historic hotel had changed hands several times since. The seller of the hotel was a consortium of lenders led by british banking giant, RBS.

Woodbine has its roots deep in the Texas oil industry. It was founded by John Scovell and Ray Hunt, son of legendary Texas oilman H.L. Hunt. It owns resorts and other real estate, including Hyatt Regency resorts in Austin and San Antonio.

Dupree Scovell, the son of Woodbine principal John Scovell, did the legwork for Woodbine on the Governor, which is the company’s first boutique hotel.

The Governor was built in 1923. It boasts 100 rooms and several large banquet halls. It is located at the corner of Southwest 10th Avenue and Southwest Alder Street, which is emerging as one of downtown Portland’s hotter neighborhoods. “Clearly, we feel we’re in a great position to capitalize on the exploding West End,” Wali said.

The Jake’s Grill restaurant that operates on the hotel’s ground floor will remain in place, Wali said.

Terms of the deal were unavailable. CBRE negotiated the transaction.