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Kimpton Raises $246M for Next Fund

SAN FRANCISCO-Total is 50% more than it attracted three years ago for its previous fund. With leverage, the company hopes to acquire $800 million worth of hotels.

By Brian K. Miller | Updated on April 03, 2008

SAN FRANCISCO-Kimpton Group Holding LLC, the parent company of locally based Kimpton Hotels & Restaurants has closed its latest fund with $246 million of equity commitments, 50% more than it attracted three years ago for its previous fund. With leverage, the company expects the institutionally funded, fully discretionary fund will acquire $800 million worth of hotels over the next three years.

The fund, Kimpton’s third, is called Kimpton Hospitality Partners II LP. Kimpton’s previous fund, Kimpton Hospitality Partners LP, closed in 2005 and now has an ownership interest in 13 Kimpton properties. Its inaugural fund, Kimpton Development Opportunity Fund, was raised in 1997 and leveraged $122-million to acquire nine properties. All but two of those have now been sold.

All three funds were formed to acquire, develop and redevelop boutique/lifestyle hotel properties—and to convert non-hotel buildings into boutique/lifestyle properties—in select major US metropolitan cities and resort areas across the country. The first properties in its latest fund are the Architects Building in Philadelphia, a historic structure that is being converted to a Hotel Palomar, slated to open in 2009, and a ground-up development in Chicago that also will be called Hotel Palomar.

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