WASHINGTON -- Even
as Kimpton Hotels pulled the wraps off the Hotel Palomar -- its
seventh property here -- Aug. 22, Michael Depatie, the
lifestyle/boutique hotel chain's CEO already was anticipating
developing more hotels in the national's Capitol.
"It is a really
vibrant hotel market," Depatie said. "It is a really strong hotel
market."
At the same time,
added Niki Leondakis, Kimpton's COO, Washington "is alive. It is
exciting. There are so many things happening in D.C. It is new and
interesting again."
That said, the
city's hotel product is, for the most part, "fairly traditional.
Kind of staid," Depatie said, which allows Kimpton's brand of
stylish hotels to stand out in the market. "We've come in and we
are different," he continued.
The new Hotel
Palomar certainly fits that description.
Located in the
trendy Dupont Circle area, the elegant hotel boasts 335 guest rooms
averaging 520 square feet each. 
(Suites are at least 800 square
feet in size.) By comparison, most hotel rooms fall in the
400-quare-foot range.
Like other Kimpton
hotels, the decor in the rooms and throughout the property is very
modern and elegant -- yet approachable. Modern art and sculptures
accent the large lobby area.
The hotel also
features a business center, a fitness center, a pool and a
restaurant, the Urbana Restaurant and Wine Bar, specializing in
northern Italian and southern French cuisine.
The Hotel Palomar,
like Hotel Monaco, is a sub-brand within Kimpton. The original is
located in San Francisco, which next to Washington, is Kimpton's
largest market with 11 hotels.
But the Washington
is quickly catching up. Kimpton's portfolio here includes Hotel
George, Hotel Helix, Hotel Rouge, Hotel Monaco, Hotel Madera and
the Topaz Hotel.
And Kimpton
continues to scout out additional locations in
Washington.
Depatie said he's
bullish on the city because "The growth in employment here is huge.
Job growth drives economic opportunity, [which in turn] drives
hotel growth. All of the hoteliers in Washington are doing pretty
well. There is a lot of demand."
Any
downside?
The only thing
Depatie said that could hurt the burgeoning market is an
overdevelopment of that very market, "which will happen over some
time," he said.
"But it is so
difficult to develop a new hotel in [Washington due to the height
restrictions]. That's why we took an existing hotel [the former
Radisson Barcelo Hotel] and converted it [to the Hotel Palomar]. It
is hard to build a new hotel because the construction costs are so
high. Even the acquisition costs of what people are paying for
hotels around here are so through-the-roof that is really hard to
make something new work."
Aside from being
one of the chain's newest additions, the Hotel Palomar is
especially noteworthy since it is the first property to emerge from
the Kimpton Hospitality Partners Fund. Established last year,
Kimpton intends to leverage the $157 million fund to acquire,
develop and redevelop $450 million worth of boutique/lifestyle
hotel properties across the U.S.
And these days it
seems Kimpton, which encompasses more than 40 hotels in 15 markets
across North America, has properties in development
everywhere.
For instance, it
has a Hotel Monaco planned for Alexandria, Va., and another Hotel
Palomar for Arlington, Va.
It also has plans
to develop the Hotel Palomar Los Angeles -- Westwood, in a property
currently flagged as a Doubletree hotel and a deal to manage and
operate Sole On the Ocean Resort & Spa, a 250-room property
currently under construction in Sunny Isles, Fla.
Meanwhile, earlier
this year it acquired the 189-room Nine Zero hotel in Boston,
reportedly for $70 million.
And while the chain
has two properties in New York, it is looking add more.
"We have a number
of hotels in development up there," Depatie said. "We have big
ambitions for New York just as we do for Washington, D.C. There is
no reason why we can't have 10 hotels in New York City."
To
contact reporter Michael Milligan, send e-mail to [email protected].