Intercontinental Hotels Group has bought Kimpton Hotels & Restaurants to create the world’s largest boutique hotel business.
The company now plans to launch the Kimpton brand internationally and to grow it within the US.
The deal, for $430 million in cash, will see all 62 of Kimpton’s US hotels join the IHG porfolio. It is set to complete in the final quarter of next year.
Kimpton, which is the world’s largest boutique hotel operator, currently has a further 16 hotels in the pipeline and also runs 71 hotel-based bars and restaurants.
When taken in conjunction with IHG’s Hotel Indigo and Even Hotels brands, the move means IHG will own more than 200 boutique hotels that are either open or in development in 19 countries.
IHG CEO Richard Solomons said: “Adding Kimpton to our portfolio of preferred brands creates the world’s largest boutique hotel business…
“I am delighted to welcome all of Kimpton’s associates and owners to the IHG family. The culture and values of both companies are well aligned and Kimpton will bring a wealth of expertise and specialist skills to IHG.”
Mike Depatie, CEO of Kimpton Hotels & Restaurants, added: “IHG is the ideal partner for Kimpton and has absolutely the right experience and specialist capabilities to help the business move to the next phase of rapid growth.”
Kimpton was founded in 1981 and manages 61 hotels with 11,300 rooms in 28 US cities. The further 16 properties it has in development, of which ten are under construction, equates to another 3,000 rooms.
IHG recently opened the world’s tallest Holiday Inn property in New York (see news, November 4).