SAN FRANCISCO -- The Kimpton Group, a leader in this city's "boutique" hotel revolution, is expanding nationwide.

Kimpton -- which operates 23 hotels and 26 restaurants in Seattle and Tacoma, Wash.; Portland, Ore.; San Francisco, Los Angeles and Chicago -- signed a contract with the General Services Administration to develop the U.S. Post Office building in Washington into a 200-room hotel. It will mark the company's foray into the East Coast market, but not its last, said Steve Pinetti, Kimpton vice president of sales and marketing.

"There are key cities we want to be in," he said. Boston and New York are other cities that fit the Kimpton profile -- with active urban centers that draw a mix of business and leisure travel. Vancouver, British Columbia, is another target, with four projects there in the discussion stage, he said.

The company was started in the early 1980s when developer Bill Kimpton took over aging urban buildings -- many old, residential hotels -- downtown here and transformed them into what he called European-style boutique hotels. The properties are midpriced but feature such unique services as afternoon wine tasting or tea service.

In recent years, Kimpton has added variety to its properties: larger hotels -- such as the 417-room Sir Francis Drake here, and the 487-room Hotel Allegro, part of the Palace Theatre redevelopment in Chicago's North Loop -- features meeting and convention space. Kimpton also has gone upscale, opening the Beverly Prescott in Los Angeles, the Alexis in Seattle and the Hotel Monaco here, which the company classifies as "five star with four star prices."

Pinetti said the Hotel Monaco -- with its vibrant, contemporary decor themed on the romance of travel -- has been a "huge success" and has led Kimpton to take the concept nationwide. A second Hotel Monaco opened in Seattle last year. In September, the company is scheduled to complete the 189-room Hotel Monaco in Denver, in a former office building downtown.

In October, Kimpton will open its second Chicago property and its fourth Hotel Monaco, a 193-room hotel in the former Oxford House Hotel. In the spring of 1999, the company expects to compete the Hotel Monaco in Salt Lake City in the former Continental Bank building downtown. Other projects include a third property in Chicago, an as-yet unnamed 120-room hotel in the Reliance Building downtown.

Pinetti said Kimpton plans to expand the Hotel Monaco concept to "eight or nine" properties, then market them together as a group. Until then, each hotel will continue to have its own sales, marketing and reservations department, although there will be common logos and collateral material.

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