The Opportunity: In January 2006, purchased a leasehold interest in a 296-room hotel originally built in 1972 for $33 million. In February 2007, began a 15-month, multi-phase redevelopment program to completely renovate and reposition the hotel as a four-star quality boutique hotel. In May 2008, the Hotel Palomar re-opened as a four-star, luxury boutique hotel, managed by Kimpton Hotel and Restaurant Group.
Result: Post renovation, the annual occupancy increased 10% and Revenue per Available Room (RevPAR) increased 35%. During the 6-year hold period post renovation, occupancy increased an additional 10% to 88.28% for the year ending 2013 and RevPAR increased an additional 47%. The hotel was sold in November 2014 for $78.7 million.
Asset Type: Hospitality
Asset Size: 264 rooms (post renovation); 262,340 rsf
Year of Construction: 1972; Redeveloped in 2007
Acquired: Leasehold interest in January 2006
Sold: November 2014