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Hospitality
Hard Rock Hotel Palm Springs
Palm Springs, CA
Completed Equity
100% funded
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Hard Rock Hotel Palm Springs
Palm Springs, CA
All Investments > Hard Rock Hotel Palm Springs
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Overview
Hard Rock Hotel Palm Springs
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated Hold Period 3 to 5 years
Investment Strategy Value-Add
Investment Type Equity
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
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Management
For more information, view the Sponsor's Investment Memorandum.
Kittridge Hotels & Resorts

Kittridge Hotels & Resorts ("KHR") is real estate investment company focused on the acquisition, asset management and development of hotels and commercial real estate assets on the West Coast of the United States, with a specific focus on Southern California. KHR principals have a 13 year track record of successful hotel investment and residential development in Palm Springs, CA, and the firm understands the Palm Springs hospitality market as well as any real estate player in the marketplace. The managing principal of KHR, Andy Carpiac, has been involved as a partner in over $600 million of real estate transactions, including the well-timed exit of a 3.6 million square foot portfolio of Southern California commercial real estate that concluded its last sale in 2005, in advance of the most recent real estate market crash.  

KHR has a successful track record of managing and renovating hotels in Palm Springs and deeply understands the nuances of the Palm Springs market. A subsidiary of KHR has been managing the subject property since February 2012, and was in charge of the renovation and rebranding of the hotel to the Hard Rock Hotel Palm Springs which opened in October 2013. The KHR team has a broad and deep network in Palm Springs and the Coachella Valley among community leaders, business owners, real estate professionals and the various government agencies.  KHR's track record and deep relationship network provides the Hard Rock Hotel Palm Springs with a competitive advantage over other hotel management and ownership groups.  

Property Level Operating Team

The quality of the onsite hotel management team can make a tremendous difference in the short and long term results of a property.  The hotel management team at the Hard Rock Hotel Palm Springs is strong and should serve as a competitive advantage.  The team is led by Hector Moreno, an industry veteran with over 30 years of experience in the industry, including at the Hard Rock Hotel Las Vegas. 

Management Team
Management
Andy Carpiac - President of Kittridge Hotels

Andy Carpiac is the President of Kittridge Hotels and its sister company, Kittridge Realty, a Los Angeles based group of commercial real estate companies focused on hotel management and real estate investments in Southern California.  He has over sixteen years of experience in the acquisition, operation, development and management of hotel, office, industrial and mixed use properties on the West Coast. Andy was one of the managing partners involved with the management and disposition of the Colony Palms Hotel in Palm Springs in 2012 in what was among the highest per key hotel sale transactions in recent Palm Springs history. He has been actively involved in Palm Springs real estate investment since 2000, including hotel investment, hotel management and residential development.  Andy was previously a partner at Pacifica Capital, a privately held real estate investment firm that built a 3.6 million square foot portfolio of office, industrial and retail properties in Southern California and sold the last property in the portfolio in 2005, in advance of the upcoming real estate correction. Over his career, he has been personally involved as a principal in more than $600 million in commercial real estate projects. Andy is a graduate of UCLA with a degree in Business/Economics. He is a past founding member of the SF Bay chapter of YPO (Young Presidents Organization) and is actively involved with fundraising for Loma Linda University Children’s Hospital.

Management
Hector Moreno - VP of Kittridge Hotels, General Manager of Hard Rock Hotel Palm Springs

Hector Moreno is a hospitality industry veteran with more than 30 years of experience in hotel operations.  Hector has worked within the Hilton, Starwood and Wyndham systems and has held positions ranging from General Manager to Director of Operations to Food & Beverage Director.  Hector is a Hard Rock Hotels veteran, having served as Senior Director of Hotel Operations for over five years at the Hard Rock Hotel Las Vegas.  His most recent role before joining Kittridge Hotels and HRHPS was as General Manager of a 349 room Hilton in the San Diego area.  Hector is one of the most respected and admired hotel professionals in the industry today and serves as the ideal profile of a General Manager and Vice President of a Hard Rock Hotel.  Hector has an ownership incentive program that allows him to participate in the success of the property and vests over a predetermined holding period.

Management
Christine Delgago - Director of Sales of Hard Rock Hotel Palm Springs

Christine supports a team of Sales and Convention Managers to maximize revenue potential, and cultivate relationships within Palm Springs and the surrounding Coachella Valley, as well as the Hard Rock community worldwide.

Delgado has extensive sales and marketing experience in the hospitality industry.  Prior to joining the Hard Rock Hotel Palm Springs, she served as Director of Sales and Marketing for the Los Angeles Marriott Burbank Airport Hotel and Convention Center, Director of Sales for the Renaissance Esmeralda Resort and Spa in Indian Wells, and Senior Account Executive for Rancho Las Palmas Resort and Spa in Rancho Mirage.

Management
Therese Everett - Director of Marketing and Public Relations of Hard Rock Hotel Palm Springs

Therese leads all marketing and public relations efforts for Hard Rock Hotel Palm Springs. Prior to joining Hard Rock Hotel Palm Springs, Everett wrote and produced news, entertainment, and sports in the Los Angeles television market, where she earned an Associated Press writing award at KTLA, and later assisted in the launch a horse-racing gaming network (TVG).

In 2006, Everett moved on to hospitality, overseeing the 2008 grand opening of the 4-Diamond, 340-room Agua Caliente Casino Resort Spa, and in 2009, the star-studded premiere of the concert theatre “The Show”. She also managed public relations for Spa Resort Casino, the world-famous Indian Canyons hiking trails, and Indian Canyons Golf Resort and wrote the resorts’ radio and television spots, corporate videos, and created a commercial film and photography department that serves as an additional revenue stream for the ACBCI properties.  

Therese has been honored by Indian Gaming Magazine, the American Advertising Federation, and was nominated for a “Businesswoman of the Year” award in the city of Rancho Mirage, California.

Management
Kevin Hoar - Director of Human Resources of Hard Rock Hotel Palm Springs

Kevin has over 8 years of management and human resource executive experience.  Kevin plays an integral role as HR Director and keeps all of the HRHPS operations and HR systems in a best-in-class condition.  Kevin worked closely with Hector Moreno in San Diego and the two have been working together for over five consecutive years.

Property
For more information, view the Sponsor's Investment Memorandum.
Address: 150 South Indian Canyon Drive, Palm Springs CA 92262
Year Built / Renovated: 1985 / 2013 (comprehensive renovation and rebranding)
Number of Rooms: 163
Net Rentable Area: 160,000 square feet (approximate)
Number of Stories: 3
Parking: 330 parking spaces (2-level underground structure)
Major Amenities: Ballroom and meeting facilities
Restaurant
Fitness center
Outdoor swimming pool and courtyard

Hard Rock Hotel Palm Springs ("HRHPS") is a newly renovated, four star resort hotel located in the heart of downtown Palm Springs. HRHPS was opened in October 2013 and has quickly become one of the top entertainment and nightlife destination in Palm Springs for both tourists and locals. The property includes oversized rooms - on average 450 square feet, all with private patios - and also an expansive 25,000+ square feet meeting and event space, stunning new lobby and common area designs, and new courtyard pool. Hard Rock Hotel Palm Springs has quickly become one of the premier hotels in Palm Springs and is on track to become one of the top entertainment destinations in Southern California.

The Hard Rock brand is an internationally recognized music and entertainment brand with over 175 retail locations in 55 countries (hotels, casinos, restaurants, and live music venues). From the US, to Europe, to Asia, and beyond, the Hard Rock brand conveys a music-inspired experience. Hard Rock Hotel Palm Springs is currently owned by Kittridge Hotels & Resorts and has a licensing agreement with Hard Rock Hotel Licensing, Inc. (“HRHL”) for use of the brand and franchisor support of the business. The hotel pays a licensing fee to HRHL and the hotel is managed by Palm Springs Hospitality, LLC, with Hector Moreno, a highly accomplished 25+ year hotel industry veteran, serving as General Manager of the hotel and Vice President of Palm Springs Hospitality, LLC.

Hard Rock Hotel Palm Springs is a multi-faceted hotel that has a unique competitive advantage in attracting both the leisure traveler segment and the corporate group segment in Palm Springs. As a music entertainment destination resort, the hotel has experienced positive signs of strong early demand from leisure travelers in the trendy Palm Springs resort market. With over 25,000 square feet of newly renovated meeting and event space, the hotel has been winning group business at a strong pace and has recently hired new sales staff to keep up with the incoming requests for group events. By positioning itself as the premier location for leisure travelers and corporate/banquet groups, the hotel is able to provide a comprehensive experience for both sets of travelers. With a desirable leisure traveler demographic alongside creative, young companies in the meeting room areas of the hotel, the property has a fun atmosphere with a great vibe throughout the day and into the evening.

The hotel is the third closest sizeable hotel to the convention center and is able to benefit from most city-wide convention center events, including hosting break-out group meetings in the hotel’s meeting spaces and ballrooms. In addition, music lovers in Southern California that have previously vacationed down-valley in La Quinta and Palm Desert are now coming to HRHPS for the music-driven experience. They are experiencing Palm Springs for the first time in many years and are drawn to the appeal of the post-renaissance Palm Springs destination. 

The local population of Palm Springs, the Coachella Valley and the Eastern Inland Empire has embraced their local Hard Rock Hotel. The Hard Rock Hotel pool and the lobby bar/lounge have become one of the top hot spots in Palm Springs for pool activity and nightlife entertainment among locals and tourists (including the tourists staying at other hotels). “Let’s grab a drink or a bite at the Hard Rock” is the new "thing to do" among both tourists and locals in Palm Springs. The pool and courtyard are newly renovated and are located in the center of the hotel, with half the hotel rooms facing the pool, creating an inclusive, socially oriented pool that feeds off the energy of the guests. The poolside rooms on the first floor have oversized patios that open to the pool deck and command premium prices. The hotel’s acclaimed restaurant, Sessions, sits poolside and has a striking and impressive design and has been receiving positive early reviews for food quality and its creative dishes.

Facility Overview

The property is approximately 160,000 square feet, which is considered large for a 163-room hotel. The rooms average approximately 450 square feet (a very large standard room size), with a few different room configurations.

  1 King Bed 2 Queen Bed 1 Queen Bed Harmony Total Rooms
1st Floor 21 21 0 3 45
2nd Floor 22 34 2 0 58
3rd Floor 25 35 0 0 62
Total Hotel 68 92 2 3 163
  1 King Bed 2 Queen Bed 1 Queen Bed Harmony  Total Rooms
East Wing 32 39 0 2 73
North Wing 36 57 2 1 92
Total Hotel 68 92 2 3 163

The remainder of the square footage is attributable to oversized common areas which include long list of amenities:

  • Rock Spa (spa)
  • Body Rock (gym)
  • Rock Shop (gift shop)
  • Lobby Bar
  • Sessions Restaurant
  • Sessions Bar
  • Hard Rock Pool bar
  • Rock Star Suite (VIP+)
  • Nightclub/lounge space (potential future build-out)
  • Signature restaurant space (potential future build-out)
  • Grand Ballroom 
  • Eight separate meeting rooms
  • Kids Club
  • In-house laundry facility
  • Spacious executive offices
  • Employee cafeteria and locker rooms
  • Engineering workshop

Financials
For more information, view the Sponsor's Investment Memorandum.
Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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