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Doubletree Plans for Kyoto Grand Move Forward

By Eric Richardson
Published: Wednesday, November 24, 2010, at 10:09AM
Kyoto Grand / Weller Court Eric Richardson [Flickr]

The owners of Little Tokyo's Kyoto Grand hotel are seeking court approval to reflag the structure a Doubletree.

The owner of Little Tokyo's Kyoto Grand hotel will appear in a Civic Center bankruptcy court this morning to move forward on a plan that would reflag the hotel as a Doubletree.

It would be the first American hotel flag for the structure, which opened in 1977 as the New Otani.

In a status update filed with the court this week, owner 3D Investments told the court that it has not formally had its franchise license agreement accepted by the Hilton-owned hotel brand, but that it has entered into a letter of intent and has completed negotiations on a 15-page property improvement plan.

The company said that it has been told its franchise application will be approved in mid-December.

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 plan to exit bankruptcy, the company will now be contributing $10 million in new capital to the project, $2 million more than it had proposed earlier this month. It this week placed those funds in an account with Pacific Western Bank.

Those funds will go toward needed repairs, settling a lawsuit over ADA access and implementing the improvement plan. The hotel's 170 employees will continue in their jobs.

At today's hearing, the company plans to ask the court to move forward on the steps that would be needed before approval of the reorganization plan.

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