News for the Hospitality Executive
Kimpton Closes $246 Million Third Hotel Acquisition Fund;
Fund Will Add $800+ Million Worth of Hotels in Three Years
SAN FRANCISCO - Kimpton Group Holding, LLC, the parent company of Kimpton Hotels & Restaurants, the largest and most successful player in the boutique/lifestyle hotel segment, has closed its third institutional real estate fund and its follow up fund to Kimpton Hospitality Partners, L.P. (“KHP Fund”). With the close of this second KHP Fund (“KHP Fund II, LP”), Kimpton has raised $246 million – 50 percent more than the amount raised in the first KHP Fund three years ago – with the goal of acquiring more than $800 million worth of hotels over the next three years.
The first KHP Fund closed in 2005 and now has an ownership interest in 13 Kimpton properties. Kimpton’s first institutional fund, the $122 million Kimpton Development Opportunity Fund (“KDOF”), was raised in 1997 and acquired nine properties. All but two of those have now been sold. Similar to KDOF, the KHP Funds have been raised to acquire, develop and redevelop boutique/lifestyle hotel properties in select major U.S. metropolitan cities and resort areas across the country. Already acquired and under development in KHP II are the Architects Building in Philadelphia, being redeveloped as Hotel Palomar Philadelphia, which began construction in February for a planned 2009 opening and a new-build Hotel Palomar in Chicago.
Kimpton is the only branded boutique hotel company with institutionally
funded, fully discretionary, dedicated funds for the acquisition and development
of boutique hotels. According to Kimpton CEO, Michael Depatie, “Our ability
to raise money at this time of tightening credit within the real estate
capital markets shows the increasing popularity of Kimpton style hotels
and the strength of our business model.”
Kimpton Hotels & Restaurants
|Also See:||Kimpton Preparing to Open its 42nd Hotel, the Hotel Palomar Los Angeles / March 2008|
|Kimpton Hotels Closes $157 Million Fund; Seeks to Double the Number of Kimpton-owned and Managed Properties / June 2005|