Kimpton Gets Financing to Reposition Hotel PalomarWednesday, April 4, 2012
A unit of San Francisco-based Kimpton Hotels & Restaurants has obtained a $46 million loan to finance the repositioning of two hotels, including Hotel Palomar San Diego.
The loan was made by PCCP LLC, a real estate private equity firm, according to an April 3 statement by the El Segundo-based company. Financing was provided to KHP Fund II LP, a real estate private equity fund sponsored by Kimpton.
Kimpton Hotels purchased the 183-room Hotel Palomar, located near the Gaslamp Quarter, out of bankruptcy in June for $49 million. The hotel, which opened in 2008, was known as Se San Diego under its previous owner.
The hotelier plans to more effectively market the Palomar to corporate groups and business travelers, the statement said. Kimpton will also use the funding to reposition Hotel Monaco in Baltimore, which it purchased out of a bank foreclosure process in February 2011.
The Palomar property, at 1047 Fifth Ave., includes 14,300 square feet of meeting space, a 5,500-square-foot spa, an outdoor pool with a 7,000-square-foot deck, and an adjacent 31,300-square-foot restaurant property occupied by House of Blues. Kimpton recently gave the hotel’s in-house restaurant a new concept. It now goes under the name Saltbox Dining & Drinking.