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19 Dec 2014
InterContinental make major play for the boutique sector with acquisition of Kimpton
By Ashley Harrison
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With properties across the US, the acquisition of Kimpton by IHG is seen as a sound financial and strategic move
Photo: Kimpton Hotels & Restaurants
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The InterContinental Hotels Group (IHC) has acquired Kimpton Hotels and Restaurants in a US$430m (€350m, £275m) deal which pushes it to the forefront of the boutique hotel and restaurant sector.
Kimpton is the largest boutique hotel business in the USA with 62 hotel in 28 cities such as San Francisco, New York and Los Angeles and another 16 in the pipeline, 10 of which are already under construction. It also operates 71 hotel-based restaurants, bars and lounges.
The brand falls into line with IHG’s existing Hotel Indigo and EVEN Hotel chains and is part of a move to capitalise on customers who are willing to pay a little more for the personal touches.
“There is a small and fast growing group of people that are interested in design and lifestyle, they don’t want the cookie-cutter treatment but still expect a level of service in an eclectic setting,” said Richard Solomons, chief executive of IHG.
Boutique hotels are one of the industry's fastest growing sectors, thriving due to increasing demands by consumers for more unique holiday experiences.
The acquisition will be financed through existing cash resources and new debt facilities, and is expected to close during the first quarter of 2015. It is expected Kimpton will double IHG’s earnings by the end of 2017. |
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