LOCATION: Washington D.C.
In January 2020, Kaulig Capital partnered with the Kemmons Wilson Companies in the acquisition of the 137-room Kimpton Rouge Hotel in the Dupont Circle neighborhood of Washington DC. The hotel offers unmatched views of The White House and The Washington Monument and is blocks from many of the country’s most popular landmarks, monuments and attractions. Despite its stellar location, the property had underperformed in recent years due to the outdated condition of the rooms and restaurant. Accordingly, the investment thesis of the transaction centered around a $20 million value-add renovation program.
After rehabilitation, the hotel will increase its room keys from 137 to 144 and fully refurbished rooms will include new carpet, wall coverings, furniture, lighting and complete bathroom remodel, and will create a new hotel experience. The property plans to open a unique chef-driven restaurant, landscaped patio area, meeting spaces and an elegant rooftop bar. The hotel was also renamed The Banneker after Benjamin Banneker, a significant figure in the history of Washington, D.C. Banneker was one of the country’s major Black innovators who, aside from contributions to astrology, mathematics and civil rights, played an integral role in surveying the land that would become the nation’s capital. Specifically, Banneker identified the meridian line for DC which is today 16th street and where the hotel is located thus intertwining the hotel with part of Banneker’s legacy.
Kaulig Capital invested in the repositioning of this marquee hotel due to its strong relationship with the Wilson family, founders of the Holiday Inn, as well as the great location and value-add plan.