Provenance Hotel Partners, a real estate investment affiliate of Portland, Oregon-based Provenance Hotels, has formed Provenance Hotel Partners Fund I (PHPF I), a $525 million real estate investment fund.
The fund’s first acquisition is seven of the nine properties that are managed or asset managed by Provenance Hotels: Hotel Max in Seattle; Hotel Murano in Tacoma, Washington; the Westin Portland, Hotel deLuxe, Hotel Lucia, and Sentinel properties in Portland; and Hotel Preston in Nashville.
In sourcing investment properties, the fund will target urban hotels with 100 to 300 guestrooms in North America’s top 25 primary and secondary markets. They will include existing locations in need of renovations or performance enhancements, branded properties that can be de-flagged, adaptive reuse projects, and ground-up developments. PHPF I will pursue full ownership, joint ventures, sliver equity, and preferred equity deals, with all purchased properties managed by Provenance Hotels.
“Raising capital will be increasingly competitive as this economic cycle churns onward,” says Gordon Sondland, chairman and CEO of Provenance Hotel Partners. “Because our fund is discretionary, sellers and developers will be assured a quick and certain close, which should give us a distinct advantage in acquiring the right properties at an attractive price.”


Adds Provenance president Bashar Wali: “Since Provenance Hotels and our affiliates began investing in hotel projects in 1985, we have refined our approach to acquiring and improving the kind of value-add assets that fit the investment goals of PHPF I. We are looking forward to having the resources of PHPF I, as they will allow us to apply our proven strategy even more nimbly, aggressively, and effectively.”


In addition to serving as operator of the seven properties owned by PHPF I, Provenance Hotels provides management services to the owners of Hotel 1000 in Seattle and the Old No. 77 Hotel & Chandlery in New Orleans. Moving forward, the company will continue its North American expansion via acquisitions and management contracts.
