A Cautionary Tale from Portland, OR – October 29, 2026

Last week, I came across an article about a luxury hotel in Portland,OR that sold for a 94% loss, selling for around $7 million as opposed to the original $104 million cost 10 years ago. Portland’s downtown crime problem was cited as a contributing factor. Zero Hedge’s headline reads, “Luxury Hotel in One of America’s Wokest Cities Sells At Shocking 94% loss.”

The report reinforced concerns I expressed in my blog on April 19, 2026, about the convention center hotel.

Then, this past Saturday an article popped up on the Enquirer site titled: “Fewer people ventured to Downtown and OTR last year, data shows,” which also reinforced my concerns.

My blog reports on the convention center hotel’s financing stack and the financial risk it presents to the city. The hotel itself is estimated to cost $540 million with the financing essentially 50/50 public and private.

The city expects to pay for its costs of the project through increased entertainment and tax revenues from the convention district. If those increases do not materialize, the city will still have to pay its substantial financial obligations to pay for the project.

In a June 18, 2025 article, the Cincinnati Business Courier reported that those obligations could total at least $2 million to $3 million per year until any additional convention-related revenues are realized. The Business Courier called those estimates, preliminary.

I suggested in my blog that if the city does not abate the crime and violence downtown, its’ ability to pay off the debt incurred in financing the project, will be in jeopardy. If the city continues to maintain a reputation associated with crime and violence downtown, will it be able to attract the type of convention business it is relying on?

My concern was also reinforced by the recent sale of the Sonesta Hotel in downtown Portland, OR.

In a report dated October 29, 2026, Zero Hedge reported that “The steep markdown comes as downtown Portland continues to grapple with the fallout from years of rampant drug use, crime and deteriorating street conditions.” It is my understanding that other hotels in Portland are also struggling financially.

It is a cautionary tale for Cincinnati. Instead of gaslighting the public that Act for Cincy has reduced crime, for example, the city needs a realistic assessment of the economic impact of the violence and crime in our downtown and our neighborhoods and a serious plan at reducing crime and violence.