Kyoto Grand Could Become a Doubletree
Little Tokyo's Kyoto Grand could be reflagged as a Doubletree under a reorganization plan filed Friday.
DOWNTOWN LOS ANGELES — Little Tokyo's Kyoto Grand could soon be given its first American hotel flag as part of a plan to bring the structure and the adjacent Weller Court shopping center out of bankruptcy.
The structure, which opened in 1977 as the New Otani, would become a Doubletree hotel under the terms of a new reorganization plan filed on Friday.
The document says that the increased revenue and profitability from the Doubletree brand will be a part of allowing the company that controls the structures to repay all its creditors the full amounts they are owed.
That's an important consideration, because it allows the firm to ask that the bankruptcy court approve its plans without requiring a vote of creditors. Lender Citizens-First Bank & Trust has separately negotiated a sale of the properties to the investment arm of a Torrance furniture company, but approval of the reorganization plan would keep the court from considering that purchase.
Beverly Hills-based 3D Investments purchased the hotel and shopping center in 2007 for $54 million. It placed the structures into Chapter 11 bankruptcy proceedings in July.
As part of the newly filed reorganization plan, $8 million in new capital would be put into the structures to complete needed repairs, settle a lawsuit over ADA access and implement an improvement plan negotiated with the Hilton-owned Doubletree.
It remains to be seen how the Little Tokyo community would respond to the reflagging. The neighborhood has seen several key properties purchased by non-Japanese interests in recent years, a trend that has raised concerns over the preservation of the neighborhood's identity.
A hearing date for the amended reorganization plan has not yet been set.