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Garfield Hotel: Historic Elegance Meets Smart Technology
The Garfield Hotel project transforms a historic 1929 Art Deco landmark in downtown Los Angeles into a 170-room boutique hotel that blends historic elegance with cutting-edge technology. Led by nightlife visionary Paul Hemming and hospitality technology specialist Benjamin Kaat, this adaptive reuse project will create an immersive, tech-enhanced guest experience in the heart of LA's Jewelry District.
With a prime downtown location and opening planned for 2026 (ahead of the 2028 Olympics), the Garfield Hotel is positioned to become a flagship boutique property offering an unparalleled blend of historic charm, modern comfort, and immersive entertainment.
Experienced Management Team
Paul Hemming - Founder & Creative Director
Entrepreneur with 20+ years in hospitality and nightlife, founder of Temple Nightclub, Mirus Art Gallery, and ECO-SYSTM. Known for integrating eco-friendly elements and cutting-edge design into immersive social spaces.
Benjamin Kaat - Chief Technology & Operations Officer
Hospitality technology specialist with 15+ years experience integrating tech solutions into entertainment and lodging businesses. Expert in bridging operational hospitality with advanced technology.
Cory Creath - Principal Architect & Design Lead
Veteran architect with 36+ years of design leadership in hospitality and mixed-use projects. Founding principal of AXIS Architecture + Design, specializing in boutique hotels and adaptive reuse developments.
Donald Sanders - Construction Manager
Seasoned general contractor with 25+ years in construction, specializing in hospitality and entertainment venue build-outs. Expert in historic building retrofits and construction management.
Unique Value Proposition
Immersive Entertainment
Stylish rooftop lounge with panoramic views, creating an engaging social atmosphere that elevates the traditional hotel experience.
Art & Design Integration
Rotating exhibits and interactive installations transform the hotel into a living gallery, providing guests with cultural immersion.
Smart Rooms & Personalization
App-based controls and AI customization allow guests to craft their perfect environment with technology that anticipates their needs.
Historic Art Deco Ambiance
Authentic 1929 architectural details preserved and celebrated, offering a genuine connection to Los Angeles' golden era.
The Garfield Hotel differentiates itself through an "experience-first" approach to lodging, where staying overnight means enjoying art installations, interactive elements, and in-house nightlife. The hotel will double as a living gallery and social hub, offering an authentic character that modern-built hotels cannot replicate.
Target Market & Positioning
Young Professionals & Creatives
Tech-savvy urban tourists and entrepreneurs (ages 25-45) seeking unique, experiential stays. Attracted by the hotel's vibe and community as much as its rooms. Proximity to Fashion District, Arts District, and entertainment venues appeals to attendees of cultural events.
Digital Nomads & Tech Industry
Remote workers and tech sector visitors who want a "living workspace" environment. The FutureFactory/Temple brand has recognition in tech and music circles, which will be leveraged in marketing.
Tourists & Event Attendees
Domestic and international tourists seeking an authentic local experience. The hotel's central location makes it ideal for visitors to major events like the 2026 FIFA World Cup and 2028 Olympics.
Positioned as an upper-upscale boutique (4-star level), Garfield Hotel will differentiate from competitors like The Ace Hotel, The Hoxton, and The Proper Hotel by offering a more technology-driven and entertainment-infused experience.
Market Demand & Performance Projections
Downtown Los Angeles has experienced a resurgence in tourism, business travel, and residential growth. City-wide hotel occupancy averaged 71.4% in 2023, with an Average Daily Rate (ADR) of about $198. The trend is upward and expected to continue improving as convention activity and international tourism return.
The 2028 Olympics will significantly boost demand, with occupancies near 100% and record-breaking ADRs. Past Olympics have shown enormous impacts on hotel metrics, with Rio 2016 seeing hotel ADR increase ~199% during the Games.
Revenue & Profitability Projections
$15M
Peak Revenue
Projected total revenue in Olympic year 2028
$6M+
Peak EBITDA
Earnings before interest, taxes, depreciation in 2028
$12-13M
Stabilized Revenue
Annual revenue post-Olympics (2029 onwards)
28-30%
EBITDA Margin
Healthy margin for a boutique hotel at stabilization
At stabilization, revenue breakdown is expected to be approximately 75% rooms revenue, 20% food & beverage (restaurants, rooftop bar, event rentals), and 5% other (parking, ancillary services). The high F&B component reflects the intentional development of the rooftop lounge and lobby bar as major attractions.
Loan Structure & Repayment Plan
1
Construction Phase (2025-2026)
$50M loan drawn in tranches as construction progresses. Interest during construction capitalized or paid from interest reserve. No principal repayment expected during this phase.
2
Initial Operations (2027)
First full year of operation with projected NOI of $2.5M. Interest payments covered by operations and reserves. Small principal curtailment payment of $1-2M targeted by year-end if cash flow allows.
3
Olympic Year (2028)
Significant cash flow windfall with projected NOI of $6M+. Surplus operating cash flow ($2M+) applied to principal. Additional $10M from fractional ownership sales of premium suites applied to principal, reducing loan balance to $35-36M.
4
Stabilization & Refinance (2029-2030)
Stabilized NOI of $3.5-4.0M comfortably covers interest with additional $1M+ for principal reduction. By loan maturity in 2030, strong debt service coverage ratio (~1.7x) enables refinancing with traditional bank loan.
Project Budget Allocation

1

1
Construction & Base Building
$30M (60%)
  • Demolition of interior partitions
  • Seismic retrofitting
  • Building out 170 hotel rooms
  • New elevators and mechanical systems
  • Façade restoration

2

2
Interior Design & FF&E
$7M (14%)
  • Furniture for guest rooms
  • Bathroom fixtures
  • Lighting fixtures
  • Interior finishes
  • Artwork purchases

3

3
Smart Technology
$5M (10%)
  • In-room IoT technology
  • Property management system
  • Security systems
  • Immersive audio-visual setup

4

4
Operations & Contingency
$8M (16%)
  • Pre-opening expenses
  • Staff training
  • Marketing and launch
  • Contingency fund
  • Interest reserve
Tranche Funding Schedule
1
Tranche 1: $10M
Loan closing & initial mobilization (Q2 2025). Covers general contractor mobilization, long-lead materials, permit fees, and establishment of interest reserve account.
2
Tranche 2: $15M
Mid-construction at 50% completion (Q2 2026). Funds hard construction costs including structural retrofit, elevators, MEP systems, and ongoing interior construction.
3
Tranche 3: $15M
Substantial completion at 90% (Q4 2026). Covers FF&E, interior finishes, technology systems, and pre-opening expenses like staff hiring and training.
4
Tranche 4: $10M
Project completion & opening (Q1 2027). Acts as holdback to ensure completion, pays remaining retention to contractors, and reinforces post-opening working capital.
Current Financial Position
Assets
  • Cash & Equivalents: $5,000,000
  • Property (Building & Land): $19,000,000
  • Pre-development Costs: $1,500,000
  • Other Current Assets: $250,000
  • Total Assets: $25,750,000
Liabilities & Equity
  • Accounts Payable: $200,000
  • Short-term Loans: None
  • Long-term Liabilities: None
  • Member Equity - Paul Hemming: $15,300,000
  • Member Equity - Benjamin Kaat: $10,250,000
  • Total Equity: $25,550,000
The Garfield Hotel project is currently unencumbered by any loans or mortgages. The acquisition of the Garfield Building in 2023 was funded entirely by sponsor equity, with the purchase price of $19 million paid in cash by the owners. All development expenses to date have likewise been paid from equity capital.
Investment Highlights & Risk Mitigation
Prime Downtown Location
Located in the heart of LA's Jewelry District, walking distance to Broadway Theater District, Crypto.com Arena, and other landmarks.
Strategic Timing
Opening in 2026, well ahead of the 2028 Olympics, allowing time to establish brand and operations before this major demand driver.
Experienced Team
Management combines visionary hospitality concept development, advanced technology integration, top-tier design, and practical construction expertise.
Strong Financials
Substantial equity already invested ($25.5M), no existing debt, and prudent contingency planning with multiple repayment sources.
The Garfield Hotel project represents a compelling opportunity with its unique positioning, strong market timing, and experienced sponsorship. The loan repayment plan leverages multiple sources including steady cash flow and strategic asset monetization, with the 2028 Olympics providing an uncommon opportunity to significantly accelerate loan repayment.
Contact Us
Paul Hemming
Managing Partner
paul@templesf.com
We welcome your questions and interest in the Garfield Hotel project. Our team is available to provide additional information on this unique investment opportunity.