iProsperity, a leading advisor for high net worth investors, today announced that in a joint venture with Soilbuild Group Holdings Ltd of Singapore, they have contracted to purchase a portfolio of seven Kimpton branded hotels in the United States from Xenia Hotels & Resorts Inc. The net purchase price is US$477 million (AUS$720 million). The contractual agreement is subject to standard closing conditions and is expected to complete in early May.
The portfolio of 1,124 guest rooms is located in some of the strongest performing hotel markets in the United States and comprises the Kimpton Canary Santa Barbara, Kimpton Hotel Monaco Chicago, Kimpton Hotel Monaco Denver, Kimpton Hotel Monaco Salt Lake City, Kimpton Hotel Palomar Philadelphia, Kimpton Lorien Hotel & Spa Alexandria, and Kimpton River Place Portland.
Mr Michael Gu, iProsperity CEO said: “There is broad interest from non-US domiciled investors for US dollar denominated real estate assets. However, the difficulty is finding the right deals. Therefore, we are pleased to secure such a high-quality hotel portfolio that comes with the strength of the Kimpton brand.”
“This is our first investment with Soilbuild Group, which has a great history of building value across the broad spectrum of the real estate value chain. We’re delighted to be investing with such an experienced partner.”
Mr Lim Han Feng, Director of Soilbuild Group said: “The prevailing volatility in global markets is delivering opportunities we believe will deliver attractive long-term returns. The Kimpton portfolio is an example of buying assets below their most recent accumulated purchase price and still with scope for further value add.”
Under the new ownership, the portfolio will continue to be managed by The Kimpton Hotel & Restaurant Group, a pioneer and leader of the boutique and lifestyle hotel market that originated In the US but is now growing a global presence.