KHP Secures $300M for Lifestyle Hotel Expansions and Revamps

Private equity firm KHP Capital Partners has raised $300 million in pledges for its sixth real estate fund.

KHP Fund VI will continue with the firm's approach of enhancing worth via acquiring and renovating properties, striving to position these as premier lifestyle facilities.

The firm has previously undertaken projects like the refurbishment of the Pan Pacific in Seattle, scheduled to reopen as the 1 Hotel Seattle in the coming month.

A significant change can be seen with Le Meridien in San Francisco, which has been reborn as the Jay Hotel under Marriott's Autograph Collection.

Founded in 2015 by seasoned professionals Mike Depatie, Joe Long, and Ben Rowe, KHP started as an investment venture focused on the hospitality sector within Kimpton Hotels & Restaurants.

Prior to Kimpton being acquired by InterContinental Hotel Group in January 2015, the team was responsible for overseeing both the hotel and restaurant operations.

In the last ten years, KHP has grown by amassing $1 billion in managed equity.

Collectively, the KHP funds possess ownership of 16 hotels and have also made two extra investments in hotel credit.

Currently, the firm is led by managing partners Ben Rowe and Joe Long, with Jeff Stulmaker functioning as the partner and chief investment officer.

Rowe stated, “We are extremely satisfied with the extent of backing from investors for this new fund. Besides receiving robust support from current investors, we have broadened our LP network by adding multiple esteemed institutional entities. This fresh fund puts us in an optimal position to capitalize on what promises to be a notably advantageous investment climate in the coming years.”

The newly established fund has already completed three investments, such as transforming a historical office structure in Charlotte into a lifestyle hotel, along with purchasing a mortgage note for a hotel located in Seattle.

The fund's third investment involved acquiring the Hotel Viking in Newport, which was finalized on April 17th.

KHP expects to utilize the rest of the funds over the coming two years.

Using co-investment equity and leveraging, the fund’s purchasing power might total almost $1 billion.

The firm anticipates investing in between eight and ten initiatives, with an emphasis on key U.S. urban areas and chosen vacation spots.

Stulmaker noted, "The conclusion of our sixth fund couldn't have come at a better time to take advantage of the ongoing disruptions caused by COVID-19 and the high-interest-rate conditions."

Through our value-adding approaches centered on enhancing operations, renovating and rebranding underfunded hotels, and transforming troubled historical office structures into lodging spaces, we are ideally situated to capitalize on present market conditions for making attractive lifestyle hotel investments.

"KHP secures $300 million for lifestyle hotel purchases and refurbishments" was initially crafted and released by Hotel Management Network , a brand owned by The News Pulse.

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