Kimpton Fund Targets Boutique Hotels

Kimpton Group Holding, San Francisco, has launched Kimpton Hospitality Partners, a fund that will acquire and develop boutique hotel properties in the United States.The fund is looking to acquire over $450 million in hotel properties over the next two years, Kimpton reports. The primary target areas for acquisitions are New York; Boston; Washington, D.C.; Miami (and other South Florida cities); Los Angeles, Napa Valley, Calif.; San Diego; Seattle; and Chicago. The fund is led by Mike Depatie and Joe Long. Mr. Depatie said, "The timing is ripe for investment in the hotel sector. 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 seven percent this year and more than six percent in 2006."