Dec. 08–Portland-based Provenance Hotel Partners has purchased seven of the nine hotels that it manages, including four in Portland — the Westin, Hotel deLuxe, Hotel Lucia and Sentinel, the company announced Tuesday.
The move was the first acquisition for a newly created $525 million real estate investment fund to be managed by Provenance.
The fund also purchased the Hotel Max in Seattle, the Hotel Murano in Tacoma and the Hotel Preston in Nashville, according to a news release. Provenance did not reveal how much of the fund was used to buy the hotels, but said the fund plans on raising additional capital.
Provenance had already said in March that it bought out its Dallas-based partner's stake in the Sentinel, formerly the Governor Hotel. Now the investment fund owns that building, said Kate Buska, Provenance director of public relations.
The new investment fund will exclusively target hotels, Buska said.
"Specifically, we will…target it toward the acquisition, development and redevelopment of urban hotels with 100-300 keys in the top 25 primary and secondary markets in North America," Buska said in an email.
"Raising capital will be increasingly competitive as this economic cycle churns onward. Launching our first fund now prepares us to take advantage of the opportunities for investment that we anticipate will present themselves," said Provenance chief executive Gordon Sondland in the news release. "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."
Provenance also manages the Hotel 1000 in Seattle and the Old No. 77 Hotel & Chandlery in New Orleans. The company is additionally planning to build a luxury lifestyle hotel that will open in 2018 in Hermosa Beach, California, and it's helping to renovate Portland's Woodlark and Cornelius Hotel buildings into a single 150-room hotel to be opened in 2017.
Tuesday's announcement comes on the heels of Marriott International's $12.2 billion takeover of rival hotel chain Starwood, which was expected to set off another round of hotel mergers.
*This post has been updated with additional comment from Provenance and additional information.
— Luke Hammill
503-294-4029
@lucashammill
