"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 Sondland. "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."

"Since Provenance Hotels and our affiliates began investing in hotel projects in 1985, we have refined our approach to acquiring and improving the kind of value add assets that fit the investment goals of PHPF I," added Wali. "We are looking forward to having the resources of PHPF I as they will allow us to apply our proven strategy even more nimbly, aggressively and effectively."

In sourcing investment properties, PHPF I will follow a multi-pronged strategy focusing on the type of projects in which the management company, Provenance Hotels, has a proven track record of success:

• Existing hotels that are under renovated or underperforming where opportunities exist to apply Provenance Hotels' redevelopment and management models to reposition the property within the market and improve returns. Examples include Provenance Hotels' 2015 conversion of the Ambassador Hotel in New Orleans into the Old No. 77 Hotel & Chandlery and 2014 conversion of the Governor Hotel in Portland into Sentinel.

• Existing buildings that can be converted to hotels through adaptive reuse projects like Provenance Hotels conversion of the historic Woodlark and Cornelius buildings in Portland, where construction has started and completion is slated for 2017.

• Ground up development in select urban locations such as Provenance Hotels' planned construction of a luxury lifestyle hotel on the sands in Hermosa Beach, CA, to open in 2018.

The real estate investment mission of Provenance Hotel Partners is supported by an experienced operations team at Provenance Hotels, its management affiliate. In addition to serving as operator of the seven properties owned by PHPF I, Provenance Hotels provides management services to the owners of Hotel 1000 in Seattle, Wash. and the Old No. 77 Hotel & Chandlery in New Orleans. The company plans continue to expand its footprint in North America through acquisitions and management contracts.