San Francisco-based boutique hotel company Kimpton Hotels & Restaurants announced that it spend more than $450 million during the next two years for acquisitions and development in the United States.
Kimpton expects to add 20 properties to its portfolio of 39 boutique properties in 17 cities, over the next five years, in such cities as Boston, Chicago, Los Angeles, Miami, Napa Valley, Calif., New York, San Diego, Seattle, and Washington, D.C.
In exchange for 22% ownership in Kimpton, Yale University is providing $157 million to Kimpton, which it plans to leverage into the $450 million for the acquisition.
“The time is right for investment in the hotel sector,” said Kimpton Real Estate CEO Mike Depatie. He added:
“Many hotels are still underperforming due to the severity of the recent economic downturn, lack of capital or ineffective management. Most industry experts are predicting a further rebound in the hospitality sector, estimating room revenue growth to increase by more than 7% this year and more than 6% in 2006.”
Report by David Wilkening
