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Kor Hotels Selling Union Square Asset for $58M

SAN FRANCISCO-Having made only minor improvements the property, the Los Angeles based hotel operator is selling a 110-room property for 32% more than it paid at the end of 2005.

By Brian K. Miller | Updated on April 06, 2007

SAN FRANCISCO-Kor Hotel Group is selling a 110-room hotel on Union Square here for $58 million, $14 million more than it paid for the asset 18 months ago . The Los Angeles-based company, which has invested very little beyond the acquisition price, says the 32% increase in value is what prompted the sale of the independent luxury property known as Campton Place.

“Our decision to (sell)…was based entirely on an opportunity that arose due to the property’s rising real estate value,” says Brad Korzen, Kor’s founder and CEO. “We are sorry to see Campton Place leave our portfolio, but believe the decision is in the best interests of both Kor and the hotel.”

Campton Place occupies two adjacent 95-year-old buildings adjacent to Union Square, around which sits a cluster of high-end retailers, restaurants and hotels. The property has appeared on Condé Nast Traveler’s elite “Gold List” and Travel + Leisure’s “Top 500 Hotels” during Kor’ ownership. At the time it acquired the asset, Kor said it planned to make only minor improvements to the property.

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