Post on 27-Mar-2015
Kimpton Hotels & RestaurantsHotel Development & Historic Tax Credits
Kimpton Hotels & Restaurants
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- Kimpton is the largest owner, operator and developer in the boutique segment
- Experienced in-house design and construction team
- Proven ability to profitably operate unique, high-volume chef-driven restaurants
- Growing brand recognition and loyalty
- Strong culture of innovation, service, and care for the environment
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Kimpton Hotels & Restaurants
ArlingtonHotel Palomar
Phoenix Hotel Palomar
Scottsdale FireSky Resort & Spa
Cupertino Cypress Hotel
San Diego Hotel Solamar
San Francisco Argonaut HotelHarbor Court HotelHotel MonacoHotel PalomarHotel TritonPrescott HotelSerrano HotelSir Francis DrakeTuscan Inn
Portland Hotel MonacoHotel Vintage Plaza
Seattle Alexis HotelHotel MonacoHotel Vintage Park
Vancouver Pacific Palisades
Denver Hotel Palomar
Austin Hotel Van Zandt
Salt Lake City Hotel Monaco
Aspen Sky Hotel
Denver Hotel Monaco
Properties Under Development
Current Properties
DallasHotel PalomarHotel Lumen
South Beach FairwindRitz Plaza
MiamiEpic Hotel
AtlantaHotel Palomar
NashvilleHotel Palomar
ChicagoHotel AllegroHotel BurnhamHotel Monaco
ChicagoHotel Palomar
MilwaukeeHotel Palomar
PhiladelphiaHotel PalomarRobert Morris BaltimoreHotel MonacoPotomacPark PotomacWashington DC
Hotel GeorgeHotel HelixHotel MaderaHotel MonacoHotel PalomarHotel RougeTopaz Hotel
AlexandriaHotel MonacoMorrison House
New York70 Park AvenueThe Muse Hotel
New YorkVu HotelEventi Hotel
BostonNine Zero HotelOnyx Hotel
CambridgeHotel Marlowe
Alexandria Lorien HotelLos Angeles
Hotel Palomar Westwood
Key LargoResort Hotel
Orange CountyGuasti Hotel
CharlestonMidtown Hotel
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Historic Tax Credit Development
- 16 historic tax credit projects
- Over $50 million in tax credits generated
- “Every Hotel Tells a Story”
“They stepped in where others had given up hope, turning white elephants into magnificent gems. With preservation at the core of its corporate strategy, Kimpton is a
model for the private sector”
-Richard Moe, President, National Trust for Historic Preservation
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Hotel Argonaut, San Francisco, CA
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Hotel Argonaut, San Francisco, CA
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Hotel Argonaut, San Francisco, CA
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Hotel Monaco, Washington, D.C.
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Hotel Monaco, Washington, D.C.
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Hotel Monaco, Washington, D.C.
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Keys to Success
- Be flexible and creative with programming
- Work within historic restrictions
- Be prepared for environmental risks and issues
- Public & private partnership
- Conversion of the Architects Building, an existing office building, into a Hotel Palomar
- Located at 117 S. 17th St. in downtown Philadelphia, proximate to Rittenhouse Square
- 230-room Hotel, including 19 suites
- 120-seat signature restaurant
- 6,500 SF of meeting space, including a 2,100 SF ballroom located on the on the 24th floor
- LEED certified
- Demolition began in Q1 2008 with full scale construction in Q2 2008
Hotel Palomar - Philadelphia, PA
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Tax Credit Structure
.01%
PalomarPhilly, Inc.(ManagingMember)
HTC Investor
Palomar PhillyMT, LLC
(Master Lessee)
Kimpton Hotel &Restaurant Group, LLC
KimptonInvestmentPartners IILLC (GP)
LimitedPartners
KHP II Philadelphia, LLC
(Hotel Fee Owner)
99.99%
99 Year Lease
5% Member Interest /FF&E + OS&E Purchase
19 Yr 8 Mo Lease
Palomar PhillyBuilding, LLC
(Hotel Ground Lessee orDevelopment Entity)
KHP II Palomar Philly Hotel, LLC(Master Sublessee)
15 Year Sublease
Mgmt.Agmt.
100%
Mgmt.Agmt.
Put Option
KearnyStreet II LLC
KHP Hotel Holding, LLC
KHP Fund II,L.P.
50%
KimptonGroup
HoldingLLC
50%
$50 Million Construction Mini-Perm Loan$6 Million Welcome Fund Loan
Guarantor (with mortgage as
collateral)
RenovationAgmt.
95%
100%
Bridge Loan for 50% of HTC Equity
- Choose your consultants and advisors wisely
- Choose a lender that has experience with tax credits and make sure their lawyers do as well
- If possible, design your basic equity and management & development fee structure with the tax credit structure in mind
- Become an expert on the details of the models and the legal documents
- Consider local tax issues – transfer taxes, business privilege taxes, etc.
- Evaluate reportable transaction implications
Tax Credit Syndication
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