KHP Fund III Looks at Adaptive Reuse

SAN FRANCISCO-This morning, GlobeSt.com reported that locally based Kimpton Group Holding LLC, the parent company of Kimpton Hotel & Restaurant Group LLC, has closed its fourth institutional real estate fund and its third fund within the Kimpton Hospitality Partners series. KHP Fund III LP has $203 million in committed equity capital with the goal of acquiring more than $500 million worth of hotels over the next three years.

In line with the first two KHP funds, KHP Fund III will follow a multi-pronged strategy for making new investments:

• Acquire non-hotel buildings that can be converted to Kimpton hotels, including “adaptive reuse” projects, such as KHP II’s new Hotel Monaco Philadelphia that opened in October 2012 in the city’s historic Lafayette building, which was previously an office building.
• Acquire existing hotels that either fit the Kimpton model, such as the recently added Hotel Wilshire in Los Angeles (also a KHP II acquisition) or properties that are underutilized and where opportunities exist to reposition them as a Kimpton hotel, such as the Hotel Palomar in Washington, DC (formerly a Radisson).
• Build new boutique hotels in targeted urban and resort areas in North America.

According to Kimpton CEO Mike Depatie, “Over the past eight years, we have built a solid track record with the KHP funds, acquiring excellent assets that meet our investment goals, while continuing to build and expand the Kimpton brand as well.”