PCCP, LLC provides $46 million

According to PCCP, LLC, it has provided a $46 million senior loan to KHP Fund II, L.P., a real estate private equity fund sponsored by Kimpton Hotels & Restaurants, to finance the repositioning of two hotels. The hotels include the 202-room Hotel Monaco Baltimore and the 183-room Hotel Palomar San Diego. "Kimpton made two separate complicated acquisitions in distressed situations and our loan will facilitate the turn-around of the two assets. Both hotels are among the highest quality in their respective markets but have under-performed in the last two years. The repositioning and turn-around of these assets is in line with Kimpton's core competency and we are confident they'll be successful in those efforts," said Rob Cohen, senior vice president with PCCP, LLC. Kimpton purchased the Hotel Palomar San Diego out of bankruptcy in June 2011. Located downtown near the Gaslamp district, the Palomar property includes 14,300 s/f of meeting space, a 5,500 s/f spa, an outdoor pool with a 7,000 s/f deck, an adjacent 31,300 s/f restaurant property occupied by House of Blues, as well as a recently re-concepted Saltbox Dining & Drinking restaurant. The Palomar opened in 2008 and features high quality custom finishes throughout guestrooms and common areas. The Palomar was previously operated under the name Sè Hotelby, an independent manager. Kimpton plans to more effectively market the hotel to corporate groups and corporate guests as one of the premiere luxury boutique hotels in the market. Kimpton purchased the note secured by the Hotel Monaco Baltimore from Capmark Bank in February 2011 and obtained fee title in April 2011. The Monaco is located in the former Baltimore & Ohio Railroad headquarters, a landmark building originally constructed in 1906. The prior developer restored and converted this historic building into a luxury boutique hotel which opened in 2009. In addition to 202 guest rooms with luxury amenities, the Monaco is home to the award-winning B&O American Brasserie and offers 6,000 s/f of meeting space with an additional 3,000 square feet of space currently being converted to meeting facilities. PCCP, LLC is a premier real estate private equity firm focused on commercial real estate debt and equity investments. PCCP has over $6 billion under management in multiple closed-end funds and joint ventures with institutional investors. With 33 investment professionals and 55 employees across four offices located in New York, San Francisco, Sacramento and Los Angeles, PCCP invests throughout the United States. San Francisco-based Kimpton Hotels & Restaurants, a collection of boutique hotels and chef-driven restaurants in the US, is an acknowledged industry pioneer and was the first to bring the boutique hotel concept to the United States. Celebrating its 30th anniversary in 2011, Bill Kimpton founded the company in 1981 and today it is well-known for making travelers feel welcomed and comfortable while away from home through intuitive and unscripted customer care, stylish ambience and having a certain playfulness in its approach to programs and amenities. Adjacent to the hotels are locally-loved, top-rated, destination Kimpton restaurants. Kimpton leads the hospitality industry in ecological practices through its innovative EarthCare program that spans all hotels and restaurants. Market Metrix, a recognized authority and leader in feedback solutions, consistently ranks Kimpton above other hotel companies in luxury and upper upscale segments for customer satisfaction. The privately held company operates over 50 hotels and restaurants in 23 cities.