InterContinental Hotels Group (IHG) has agreed to acquire US-based boutique hospitality company, Kimpton Hotels & Restaurants.
The deal, worth US$430 million in cash, will see IHG take control of Kimpton’s 62 hotels in the US (plus 16 in the pipeline), along with 71 hotel-based restaurants and bars.
IHG said the acquisition would make it “the clear market leader in the boutique segment”, where it is already present with its Hotel Indigo brand. It also now plans to expand the Kimpton brand within the US, and to launch it globally.
“Kimpton is a well-established and highly successful business that has built an industry leading position in the US,” said Richard Solomons, CEO of IHG.
“It has created a portfolio of world-class hotels and destination restaurants, and the distinctive and innovative Kimpton brand will fit perfectly into the IHG brand family. Adding Kimpton to our portfolio of preferred brands creates the world’s largest boutique hotel business.
“We will use our scale, network of owner relationships, and powerful digital platforms to accelerate Kimpton’s growth both within the US and internationally,” he added.
Established in 1981, Kimpton now operates properties in major US hubs including Boston, Chicago, Los Angeles, New York, San Francisco, Seattle and Washington DC. Following the acquisition, the Kimpton team will continue to be led by the company’s current chief operating officer, Mike DeFrino.