San Franciso-based boutique hotel operator, Kimpton Hotel & Restaurant Group, has announced the creation of a fund to acquire more than $450m (£247m, 367m euros) of hotel properties over the next two years.

The group has launched Kimpton Hospitality Partners, a limited partnership formed to acquire, develop and redevelop boutique and lifestyle hotel properties in select major metropolitan cities and resort areas across the United States.

"The timing is ripe for investment in the hotel sector," said Mike Depatie, CEO of Kimpton Real Estate. "Many hotels are still under-performing due to the severity of the recent economic downturn, lack of capital or ineffective management.

"Most industry experts are predicting a further rebound in the hospitality sector, estimating room revenue growth to increase by more than 7 per cent this year and more than 6 per cent in 2006.

"Our new fund gives us the ability to close quickly on projects we determine meet our acquisition criteria. In addition to controlling our capital source, we make all the brand, management and development decisions, meaning less time is spent on getting input or approval from third parties to enter into a transaction."

The company plans to double the number of Kimpton-owned and managed properties from its existing portfolio of 39 over the next seven years and further expand its brands – which inlcude Hotel Monaco and Hotel Palomar – across North America.

Two new Hotel Palomars, in Dallas, Texas and Arlington, Virginia, are set to open next year.

The new fund will pursue opportunities in a variety of areas: acquiring existing hotels in desirable locations where the property is underutilised and would benefit from repositioning as a Kimpton Hotel; acquiring non-hotel properties which could be converted; acquiring or developing Kimpton Hotels within mixed-use developments and acquiring boutique hotels in need to some redevelopment or repositioning. Details: www.kimptonhotels.com