KHP Capital Partners Secures $300M for Sixth Hotel Fund
KHP Capital Partners (KHP), a private real estate investment firm focused on lifestyle hotels, has raised $300 million for its sixth discretionary fund, KHP Fund VI. The fund will continue the firm’s value-add strategy, targeting acquisitions for enhanced branding, renovations, repositioning, and adaptive reuse of historic properties.
KHP’s track record includes transforming the Pan Pacific in Seattle, WA, into the 1 Hotel Seattle (opening May 2025) and redeveloping San Francisco’s Le Meridien into the Jay Hotel, part of Marriott’s Autograph Collection.
Founded in 2015 by Mike Depatie, Joe Long, and Ben Rowe, San Francisco-based KHP manages $1 billion in equity, owning 16 hotels and two hotel credit investments. The firm is led by managing partners Ben Rowe and Long, with Jeff Stulmaker as partner and CIO.
KHP Fund VI has initiated three investments: Adaptive reuse of a historic office building in Charlotte, NC, into a 240-room lifestyle hotel; the acquisition of a first mortgage note on a lifestyle hotel in Seattle, WA; and the acquisition of the Hotel Viking in Newport, RI, on April 17.
The fund aims to invest in eight to 10 projects over the next two years, with nearly $1 billion in buying power through co-investment and leverage, focusing on major U.S. markets and select leisure destinations.
“The final closing of our sixth fund comes at the perfect time to capitalize on the lingering distress from COVID and the elevated interest rate environment,” said Stulmaker. “With our value-add strategies that focus on driving operational upside, the renovation and repositioning of under-capitalized hotels and conversion of distressed historic office buildings to hotel use, we are well positioned to take advantage of the current environment to make compelling lifestyle hotel investments.”
Pictured: Hotel Viking in Newport, RI
