Portland's famed Eastland Park Hotel is also undergoing a total $50-million renovation, and in the second quarter of 2014, will open its doors as the Westin Portland Harborview. New Castle teamed with Rockbridge Capital in this acquisition.

“We've developed a sweet spot for acquiring under-managed, under-flagged, undercapitalized assets and restoring them to good health,” says Chase. “Both the Algonquin and the Eastland are perfect examples of independent hotels that will benefit from carefully designed renovations, well-considered flag selection and solid management that respects the hotel's history.”

New Castle will also build new properties, despite the dearth of new development of lodging assets. It's working on a combination Residence Inn and Courtyard by Marriott in Syracuse's Armory Square, and it's gearing up to break ground on a new Westin in Jekyll Island, GA.

The Inns at Armory Square, to open in May 2013, features a 78-room Residence Inn and a 102-room Courtyard by Marriott under one roof. The project is Downtown Syracuse's first new build hotel in more than 50 years and the largest, non-office building endeavor in more than 25 years. The hotels are part of the renaissance of the Armory Square section of Downtown Syracuse, an urban lifestyle center of shops, restaurants and theaters a short distance from the University.

The 200-room oceanfront Westin Jekyll Island Hotel will break ground later in the first quarter and will become the anchor hotel for Jekyll Island's new convention center, which was completed last May 2012. It's believed that the convention center will host about 120 events per year, helping to revitalize the Island as a leisure and conference destination. The property is one of only a handful of convention center hotels currently in the works.

“There always are plenty of takers for big, high profile deals in obvious markets,” Chase says . “Experience has shown us, however, that a carefully selected, challenging deal in an unexpected market can be just as rewarding.”