Former Radisson Barcelo Hotel in Washington D.C.
Hotel Will Receive $32 million Renovation
to Transform to Hotel Palomar
|SAN FRANCISCO (July 20, 2005) – Kimpton Group Holding, LLC, (“Kimpton”)
the leader in the boutique/lifestyle hotel segment, today announced its
first hotel asset acquisition by Kimpton Hospitality Partners, L.P. (“KHP
Fund”), an acquisition fund recently formed and managed by Kimpton to acquire,
develop and redevelop boutique/lifestyle hotel properties.
The KHP Fund has acquired the former Radisson Barcelo Hotel in Washington D.C., located in the vibrant Dupont Circle area. Kimpton has launched an extensive $32 million renovation to transform the hotel into a luxuriously appointed Hotel Palomar, slated for completion by early 2006. The property, originally 301 rooms, will be expanded to 335 rooms and an additional 4,000 square-feet of meeting space is being added for a total of approximately 10,500 square-feet, in order to accommodate larger group business and highly customized social catering. Additionally, a signature chef-driven Kimpton restaurant will be a significant part of the project. Marking Kimpton’s seventh property in the metropolitan D.C. area, the Hotel Palomar, Washington D.C., is the first property to be owned by the KHP Fund.
“Washington D.C., like other major urban centers, has proven to be a great market for Kimpton, with our cluster of properties achieving a 20 percent RevPar increase over the past year, ” said Mike Depatie, CEO of Kimpton Real Estate. “With the recent closing of the KHP Fund, we sought an opportunity to strengthen Kimpton’s brand presence on the East Coast, while also attempting to provide superior returns to our investors. We are confident that a Hotel Palomar in the D.C. market will accomplish both goals.”
The KHP Fund will play a critical role in Kimpton’s immediate future plans for growth, which includes additions to the company’s existing 38 properties in 17 cities. The objective of Kimpton’s $157 million KHP Fund is to acquire more than $450 million in hotel properties over the next two years, following an opportunistic investment strategy.
“Acquisitions of existing hotels in desirable locations where an opportunity exists to reposition the property as a Kimpton hotel, is a strategy the KHP Fund will continue to pursue. The KHP Fund will also look to acquire existing boutique hotels that could benefit from a capital upgrade or Kimpton management. Well located urban buildings with a strong potential to be converted to Kimpton-style hotels will be considered for acquisition by the KHP Fund as well,” continued Depatie.
During renovations the hotel will operate under the independent name, Dupont Circle Hotel, until the official opening of the Hotel Palomar, Washington D.C. in January 2006.
Upon completion, the 335-room full-service property will feature some of the most spacious guest rooms and luxurious suites in the city; averaging 450 and 800 square-feet respectively. Designed by hospitality design specialist Cheryl Rowley of CRD, Inc., the hotel will evoke the original Hotel Palomar design concept of timeless sophistication, with a modern tone that is tailored and elegant with signature features reflecting the hotel’s location. Adjacent to the hotel, a newly designed and themed 173-seat restaurant will offer guests a Mediterranean dining experience in a warm and artful setting.
Hotel Palomar, Washington D.C. will be the second Hotel Palomar to open as part of the recently announced Palomar brand expansion (the first Hotel Palomar opened in San Francisco in 1999) “As Kimpton continues to grow, Hotel Palomar is a strong representation of the company’s future,” explains Joe Long, Executive Vice President of Acquisitions & Development of Kimpton. “The high-end residential design and sophisticated atmosphere clearly resonates with both leisure and business travelers. We will continue to bring Kimpton’s signature stand-alone properties to the market as well as further develop the Hotel Monaco brand, but there is a definite niche for the Hotel Palomar in key urban and resort locations.”
Last month, Kimpton announced two additional Hotel Palomar projects in Dallas, Texas and Arlington, Virginia. Both properties will be premiere mixed-use developments featuring residential, retail and hotel facilities.
|Also See:||Former Mockingbird Hilton on Dallas' North Central Expressway Acquired; $80 million Renovation Planned to Convert Former Hotel and Site to a Kimpton Hotel and Condominiums / November 2004|
|Kimpton Hotels Closes $157 Million Fund; Seeks to Double the Number of Kimpton-owned and Managed Properties / June 2005|