As a part of the move, the hotel company will create a $525 million investment fund.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Provenance Hotel Partners is buying four Portland hotels as it looks to own more of the holdings it manages.
As a part of the move, the hotel company will create a $525 million investment fund.
The company declined to say how much of the fund would be used for acquiring the seven hotels. In a news release, it said the balance of the capital — along with more funds yet to be raised — would be used toward acquiring, developing or redeveloping new assets.
Led by CEO Gordon Sondland, Provenance said it’s seeking seeking urban spots with between 100 and 300 rooms in North America’s top 25 primary and secondary markets.
(READ MORE: Portland Business Journal)
The Portland hotels being bought: Hotel deLuxe, Hotel Lucia, the Sentinel and Westin Portland.
“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.
(READ MORE: OregonLive.com)
RELATED NEWS: Provenance Hotels adds Seattle holding; Renovation to historic buildings will add 150 hotel rooms to Portland; Convention Wisdom
