Hotel Palomar

Investment Summary

KHP I acquired the Radisson Hotel located off of Dupont Circle in an off-market transaction. The well located, under-branded and under-performing hotel was acquired well below replacement cost, with an opportunity to realize significant upside through a conversion and repositioning of the asset into a premier, 4-star boutique property. KHP I invested $40 million to modernize the building and add 34 additional keys. Following the repositioning, the Palomar significantly outperformed its competitive set, achieving a RevPAR penetration of 116%. NOI increased nearly 300% during KHP I’s ownership.

Location: Washington, DC
Keys: 335
Strategy: Renovation / Repositioning
Acquisition Date: November 2004
Disposition Date: March 2012

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A Hospitality Investment Firm