A hotel near Portland International Airport is being converted into two in one building. Construction began in June and is expected to finish next year.

The 200-room former Shilo Inn Airport hotel, currently being operated as Sojourn Suites, at 11707 N.E. Airport Way in Portland, will become two distinct hotels: Hyatt House and Mindaro by JdV (a Hyatt brand).

The project is being developed by property owner Vesta Hospitality of Vancouver, Washington. Vesta Hospitality acquired the property in June 2024 from a lender, PDX Shilo Loan Owner LLC, which took ownership in 2023, according to Multnomah County property records.

The Hyatt extended stay hotel will have 112 rooms with apartment-style layouts including a kitchen suite, living area and full closet. The Mindaro will have 90 rooms in a boutique lifestyle setting that pairs upscale amenities with a Pacific Northwest-inspired design, Linh DePledge, Vesta Hospitality vice president of brand and communications, stated in an email.

The project team also includes Skidmore AI (exterior design and architecture) of Seattle; Plante’s Hotel Renovation (interior design and some construction) of Austin, Texas; Swenson Say Fagét (structural engineering) of Seattle; AWA Electrical Consultants (electrical engineering) of Lynnwood, Washington; Bogard Pascua Engineers (HVAC and plumbing engineering) of Bothell, Washington; and Robertson & Olson Construction (general contractor) of Camas, Washington.

A $9.9 million building permit is under review for the remodel.

The full transformation involves redesigning guest rooms and public spaces, introducing new food-and-beverage concepts, elevating amenities, and enhancing the arrival experience and exterior expression, according to Vesta Hospitality. The aesthetic will reflect a modern Columbia River Corridor sensibility and align with Hyatt brand standards and Vesta’s elevated service model, Vesta Hospitality CEO and Chairman Rick Takach stated in an email.

While Vesta Hospitality could not disclose the total project cost at this time, Takach said the project is a substantial investment in the airport market.

“We feel good making that investment because how the upscale market at the airport is producing,” Takach said.

Vesta Hospitality is also developing Jawfish Restaurant, a stand-alone eatery that will connect to the hotels via a fully enclosed corridor. The menu will blend inventive cooking with elevated comfort food, DePledge stated. Inside Jawfish, a separate room with 28 seats will offer Le Petite Chef – an immersive dinner show experience.

“In that area we’re in, there’s not much food and beverage being offered,” Takach said. “We think it’ll kind of hit the mark for the whole area.”

Vesta Hospitality has worked with Mark Mathias and Ali Novinger, who closed Beaches Restaurant & Bar in Vancouver last year, on the project’s food and beverage aspects.

Jawfish is expected to open in November. Both the Hyatt House and the Mindaro are set to open next year.

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Sonnenblick-Eichner Co. has arranged a $58 million sale and $40.6 million of acquisition financing and leasehold interests in the Surfsand Resort, a beachfront resort in Cannon Beach.

The resort was purchased by Vancouver, Washington-based Vesta Hospitality.

The new ownership is planning a $9 million renovation that will enhance the resort and its amenities.

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A Vancouver, Washington-based firm plans to break ground in August on a seven-story AC Hotel by Marriott on the Vancouver riverfront.

The $50 million hotel, expected to appeal to business travelers, will have 150 guest rooms and two floors of above-ground parking on the second and third floors. It’s the latest ground-up project for Vesta Hospitality, which in the past has mostly used a different strategy.

“Our primary focus has been acquisition of product and repositioning for better value of product,” Vesta CEO Rick Takach said.

The building will also have about 5,000 square feet of top-floor office space that Takach said he may take for Vesta.

In the case of the AC Hotel, Vesta took a gamble on the chance to be part of new development on Vancouver’s south-facing Columbia River frontage.

“We wanted to be down on the waterfront,” Takach said.

The project comes amid a rapid transformation of the area. Gramor Development is overseeing a massive 20-block redevelopment of a former Boise Cascade paper mill site nearby.

The AC Hotel will occupy land leased by the Port of Vancouver USA. Takach agreed to build the hotel to Leadership in Energy and Environmental Design gold standards as a result of negotiations with the port. He also agreed to build 160 parking spaces for the fast-growing area.

Takach said he turned his attention to the port’s land after declining to meet Gramor’s asking price for a parcel at The Waterfront Vancouver.

Takach said he’s interested in bringing in additional investors for the AC Hotel project, which is in an opportunity zone. The tax designation helped attract construction financing from Rockbridge Capital of Columbus, Ohio, a frequent Vesta partner.

DLR Group is designing the AC Hotel, and Camas, Washington-based Robertson & Olson Construction is serving as the general contractor. Otak is the engineer, and Urban Resources Inc. is the developer’s representative. Robertson & Olson’s experience working on the Vancouver waterfront and its relationships with subcontractors made it an obvious choice, Takach said.

Meanwhile, Vesta is also closing in on a purchase of the Cannery Pier Hotel, a 15-year-old, 46-room hotel that juts into the Columbia River in Astoria. Vesta is under contract to buy the hotel for $13 million, Takach said. The property is being offered by the estate of Astoria developer Robert “Jake” Jacob, who died last year.

Takach is waiting on approval of a waterway lease from the Oregon Department of State Lands before the transaction closes.

“I think it’s arguably an irreplaceable asset,” Takach said, noting development of the hotel took more than a decade.

Takach said he meets with Vesta’s acquisition team every Friday to review hotels for sale across the United States. Currently, the company owns 12 hotels, but that could change, he said.

“It’s a good time to sell,” he said.

Notably, the company has avoided the crowded hospitality market in Portland’s Central City. Takach described Portland’s hotel market as “in one word: scary.”

More than 1,900 hotel rooms are in development or under construction in central Portland, including the 600-room Hyatt Regency at the Oregon Convention Center, the 486-room Toyoko Inn, the 251-room Ritz-Carlton at Block 216, the 170-room Hyatt Place in the Pearl District, the 250-room Hyatt Unbound and the 179-room Moxy.

“As an industry, we try to do this to ourselves every few years,” Takach said of the rapid expansion.

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The Port of Vancouver USA on Tuesday named Vesta Hospitality the preferred developer for the port’s Terminal 1 property.

Vesta Hospitality President and CEO Rick Takach Jr. said he plans to build a 150-room AC Hotel by Marriott. Takach said his successful bid benefited from the inclusion of Marriott, architecture firm DLR Group and construction firm Deacon Corp.

“I’m bringing a very experienced team to the table at this point,” he said. “We worked very, very hard to put our best foot forward.”

Also, the port has chosen Holland Partner Group to serve as the master developer of a mixed-use complex at Terminal 1. The firm has developed several projects in Hillsboro and Wilsonville, and has also developed projects in Seattle’s South Lake Union neighborhood, and in Los Angeles, San Diego and Denver.

The mixed-use project at Terminal 1 could include office, retail and residential space. The port and the developers will refine a comprehensive development plan with the goal of breaking ground in mid-2017, said Katy Brooks, the port’s economic development director.

“It’s a very aggressive timeline, but that’s what we’re shooting for,” she said.

Takach cautioned that a long-term land lease still must be negotiated and a final vote by port commissioners must take place. But he said port officials and Vesta share a common vision.

“My expectation is that we will be able to get this done without too much of a problem, because everybody’s on the same page,” he said.

Takach is a longtime Vancouver developer. Vesta also owns the Homewood Suites by Hilton, which opened along the Columbia River in 1997. Takach said his local experience gave him an edge in the bidding.

“They’re looking for someone that could be available,” he said. “We’re obviously very available – I can see the site from my office.”

The Terminal 1 site is near a former Red Lion hotel on the Columbia River. A portion of the structure is being converted into the Columbia River Life Sciences Building – a planned hub for biotech companies. AbSci has signed a lease agreement, and will move in soon, said Abbi Russell, communications manager for the port.

Takach said he has invested in the Homewood Suites property and its employees over the years, and that he plans to do the same with the AC Hotel.

“This is not a buy and flip for me,” he said. “This is a long-term hold.”

Construction of the AC Hotel is expected to cost $25 million to $30 million, Takach said. A rooftop deck is being considered for the European-inspired hotel.

The AC Hotel will have some meeting space, but Takach said he’s not trying to take business from Vancouver’s existing hotels.

“We’re not going to build so much meeting space that we’re trying to compete,” he said. “We just want to build enough that we could do some high-end corporate meetings.”

Separately, Takach closed Tuesday on a purchase of the 148-room Best Western Agate Beach Inn in Newport. He declined to reveal the purchase price, but said he plans to invest about $6.5 million in improvements.

“It could be a little jewel,” he said.

The plan is to renovate guest rooms, the lobby, the exterior, and food and beverage operations. Takach said he would rely on Texas-based Plantés Hotel Renovation Inc. for the project.

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