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The fund closed on its third investment, the acquisition of the Hotel Viking in Newport, RI, on April 17th. – Image Credit KHP Capital
- KHP Capital Partners has successfully raised $300 million for its sixth investment fund, aimed at acquiring and renovating lifestyle hotels.
- The new fund has already made three investments, including converting a historic office building in Charlotte, NC, into a lifestyle hotel.
KHP Capital Partners (KHP), an investment firm focused on the hospitality industry, has secured $300 million in commitments for its sixth discretionary real estate fund. The fund aims to acquire and renovate properties to establish them as leading lifestyle hotels.
The firm plans to leverage its extensive experience in hotel operations and development. The focus will be on hotels that could benefit from improved branding and management, properties requiring capital for renovation and repositioning, and the adaptive reuse of historic buildings.
Successful past projects include the renovation of the Pan Pacific in Seattle, WA, which is set to reopen as the 1 Hotel Seattle in May 2025, and the transformation of the Le Meridien in San Francisco into the Jay Hotel, which is currently part of Marriott’s Autograph Collection.
Established in 2015 by Mike Depatie, Joe Long, and Ben Rowe, KHP was formed to continue the hotel real estate private equity business they began while leading Kimpton Hotels & Restaurants. Today, the company manages $1 billion of equity and owns sixteen hotels, with two additional investments in hotel credit.
The new fund has already made three investments. These include converting a historic office building in Charlotte, NC, into a 240-room lifestyle hotel and acquiring the first mortgage note on a lifestyle hotel in Seattle, WA. The fund also acquired the Hotel Viking in Newport, RI, on April 17th.
The remaining funds will be deployed over the next two years, which, combined with co-invest equity and leverage, could result in nearly $1 billion of purchasing power. KHP plans to invest in eight to ten projects through this fund, focusing primarily on major U.S. markets and selected leisure destinations.
