Latest news: KHP closes $300M fund; Dynamic City buys in Scottsdale; Peachtree EB-5 deal

KHP closes $300M fund. San Francisco-based KHP Capital Partners has closed on $300 million of commitments for its sixth discretionary real estate fund. The fund has made three investments to date. The first two deals include the ongoing adaptive reuse conversion of a historic office building in Charlotte into a 240-key lifestyle hotel and the acquisition of the first mortgage note on a lifestyle hotel in Seattle. The fund also closed on the acquisition of the Hotel Viking in Newport, Rhode Island, on April 17. The remainder of the fund is expected to be deployed over the next two years and KHP expects to invest in 8-10 projects through this fund. KHP will continue to acquire hotels that can benefit from enhanced branding and management, renovating and repositioning hotels in need of capital, and adaptive reuse of historic buildings. The company has an extensive track record with these strategies, including the renovation of the Pan Pacific in Seattle, which will be relaunched as the 1 Hotel Seattle in May, and the recent transformation of the Le Meridien in San Francisco into the Jay Hotel, part of Marriott’s Autograph Collection. 

Dynamic City acquires in Arizona. Provo, Utah-based Dynamic City Capital (DCC) has acquired the 137-key The Wilde Resort and Spa in Sedona, Arizona, from an undisclosed buyer for an undisclosed amount. This acquisition marks DCC’s expansion into the luxury spa resort market.

Peachtree receives I-956F approval. Atlanta-based Peachtree Group has received its I-956F approval from U.S. Citizenship and Immigration Services, the government agency that oversees the EB-5 Immigrant Investor Program, for the currently under construction 127-key SpringHill Suites by Marriott in Bryce Canyon, Utah. Peachtree originated $16.95 million in floating-rate construction financing over a three-year term for the development. This is the third hotel development for which Peachtree has received I-956F approval, having previously secured it for its Home2 Suites by Hilton development in Boone, North Carolina, and TownePlace Suites by Marriott in Palmdale, California. Peachtree launched its EB-5 program in 2023.

Lone Star acquires in Japan. Dallas-based Lone Star Funds, through its affiliate, Lone Star Real Estate Fund VII LP, has acquired a property that it will convert into a 175-key hotel in Yokohama, Japan, from Singapore-based Mapletree Investments Pte Ltd. for an undisclosed amount. The asset is currently operated by a serviced apartment operator, but Lone Star plans to convert it to a hotel by the end of 2025 and reposition it as an upscale branded hotel. JLL advised on the transaction. The property opened in November 2020. 

Paris hotel sells. A pair of New York City-based investors, TPG Angelo Gordon and EQ Group, have sold the Hôtel des Grands Voyageurs in Paris to an undisclosed buyer for an undisclosed amount. The transaction was a private club deal structured by OrigInn SAS, with management support to be provided by Oversight. JLL advised the seller on the transaction.

Auberge names new EVP. Bethesda, Maryland-based Auberge Resorts Collection appointed Mohamed Elbanna as executive vice president of global operations. Elbanna will oversee day-to-day operations across the Auberge portfolio in his new role. He has more than two decades of hospitality experience and was previously COO of Fort Partners US. Before that, he worked at Citadel and Four Seasons Hotels and Resorts.

Flamingo in Sonoma rebrands. The 170-key The Flamingo Resort & Spa in Sonoma Wine Country in California is joining the Tapestry Collection by Hilton. San Francisco-based Palm House Hospitality owns the property, which was built in 1957 and is managed by Boston-based Pyramid Global Hospitality. 

Travel + Leisure Q1 earnings. Orlando-based Travel + Leisure announced a net income of $73 million and net revenue of $934 million as part of its first-quarter earnings. The company’s vacation ownership segment had a 4% increase in revenue year-over-year and an 18% increase in adjusted EBITDA, while its travel and membership segment suffered a 7% decrease in revenue YOY and a 9% decrease in adjusted EBITDA. Analyst Patrick Scholes of Truist Securities said T+L’s full-year guidance was reiterated, and macro pressures were not mentioned in the earning release. “While we hope for the best this earnings season as it relates to the outlook for the rest of the year for the greater lodging-leisure sector, we have to think that [Travel + Leisure] may be a positive outlier here with their unchanged guide and only positive commentary… Vacation ownership companies do, at least in ‘normal times,’ have greater visibility into their demand drivers than do hotel companies.”