Portland Hotel Bought for $108 Million in 2016 Sells for $6.8 Million Amid City's Decline

A luxury hotel in downtown Portland, acquired for $108 million in 2016, has been sold for just $6.83 million, a staggering 93% decrease in value. The Royal Sonesta hotel was part of an eight-property portfolio purchased by Laxmi Hotels Group, which also included properties in Minneapolis and Charlotte. The Minneapolis Royal Sonesta experienced a similar devaluation, selling at a 93% discount for $5 million.

The sale of the 221-room Portland hotel underscores the city's significant challenges, including a persistent crime wave and quality-of-life issues that have been prominent since 2020. Despite a recent decrease in violent offenses from record highs, the city continues to grapple with homelessness and squatting. Portland has seen a substantial increase in its homeless population, with over 12,000 individuals experiencing homelessness between 2023 and 2025.

Historically, an open-air drug market operated across the street from the Royal Sonesta hotel, though recent renovations by property owners have addressed this issue. The decline in property values and the city's struggles have been noted by residents and observers.

Portland was among the cities that moved to defund its police department in the aftermath of George Floyd's murder in May 2020. This, coupled with other factors, has contributed to the city's ongoing challenges. Data from the Oregon Employment Department indicates that the state lost a net of 670 residents to other states between 2020 and 2025, with population growth primarily driven by international immigration during that period.