The Riverhouse sale in the works, owners confirm
Owners of The Riverhouse, a hotel landmark since the 1970s along the Deschutes River in Bend, are close to an agreement to sell the hotel and adjacent convention center to Vesta Hospitality LLC, a hotel management group based in Vancouver, Washington, Managing Partner Wayne Purcell confirmed Wednesday to NewsChannel 21.
Purcell said final details of the deal are still being worked out and he would not disclose the purchase price, but employees were informed of the impending sale at a 2 p.m. meeting. He said the adjacent River’s Edge Golf Course won’t be part of the sale of the hotel, restaurant and convention center.
The Central Oregon Visitors Association, the region’s tourism promotion agency, has a long history with the Purcell family. And while CEO and President Alana Hughson is sad to see them checking out, she’s appreciative of their contributions to the community over the years.
“Certainly this is a family that has more than given their commitment to their community, and I’m excited for them if this decision means they get to enjoy the fruits of their labor,” she said late Wednesday.
Vesta Hospitality LLC was established in 1996 and operates hotel properties in several states, including Comfort Suites in Redmond and two hotels in northeast Portland, a Country Inn & Suites and Staybridge Suites.
Rick Takach, CEO of Vesta Hospitality, told NewsChannel 21 they have no plans to replace the current Riverhouse management team and that he is “excited to meet them.”
The Riverhouse has about 200 employees, according to Economic Development for Central Oregon, which ranked the facility No. 33 on its list of the region’s 50 largest private employers last year.
“I would imagine anyone stepping into a business of that magnitude would want to make sure that they take care of the employee team and protect what’s there,” Hughson said.
Rumors of a possible sale of the property have been swirling since at least last spring, when Purcell said no deal was in the works but that he and his parents Clyde and Mary Lou were, as always, willing to entertain offers.
“We don’t have a price on The Riverhouse,” he told NewsChannel 21 last May. “I get people all the time inquiring.”
Purcell said then that the Purcell family was “doing some valuation stuff, estate planning stuff, some changes with the LLC (limited liability corporation) and ownership and stuff like that. We’re all getting older, the parents are getting older.”
“For the last 30 years, I’ve got inquiries about selling the place,” he said. “We get people all the time. I get tired of fielding (the calls).”
However, Purcell added at the time, “Everything’s for sale, for the right price. As far as saying, ‘We’re going to get out of this by X date’ — nothing like that.”
With the economy on the rebound, Purcell said they were having a “good year” and making improvements, such as replacing old carpets in the rooms. Asked if he was looking for a buyer, Purcell said, “No. I’m working on finding new carpet.”
The Purcell family came to Bend in the early 1960s and worked in the construction industry. The motel opened with 93 rooms in February 1974. It was located on an old homestead where a meat processing plant operated for many years. The Purcells received approval in 1980 to build an additional 200-room hotel, convention center, golf course, restaurant and home sites.
The first nine holes at River’s Edge Golf Course were built in 1987 and the first residential lots developed. The upper nine holes was acquired in 1992. After a land use dispute with some neighbors, the Purcells broke ground on the convention center in the fall of 2005.
The sale of The Riverhouse Hotel and Convention Center, when finalized, will be the latest in a high-profile string of family-owned Bend businesses that have been sold to new, larger owners in the past year, including BendBroadband’s $261 million sale to TDS Telecom of Wisconsin and 10 Barrel Brewing’s purchase by the global beverage conglomerate Anheuser-Busch (AB InBev).
