IHG acquires Kimpton Hotels
An agreement was made for IHG to purchase Kimpton for $430 million in cash. IHG said that Kimpton and its portfolio of hotels, restaurants and bars will be a strategic addition to IHG’s own growing boutique business which includes Hotel Indigo and the new fitness-oriented EVEN Hotels.
That Kimpton has been looking for a strategic investor for some time, with Marriott as one of the first major players to show formal interest. went down this road with Kimpton a few years ago but it didn’t work out.
Richard Solomons, Chief Executive Officer of IHG said: “Kimpton is a well-established and highly successful business that has built an industry leading position in the US. 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.
The acquisition is another step in IHG’s well-established asset-light strategy of investing in high-quality growth, building on a strong track record of developing iconic global brands. We will use our scale, network of owner relationships, and powerful digital platforms to accelerate Kimpton’s growth both within the US and internationally.
The hugely talented Kimpton team will continue to be led by Mike DeFrino, currently Kimpton’s COO, and 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, Chief Executive Officer of Kimpton Hotels & Restaurants said “Kimpton is a unique business with a strong track record of excellence in everything from design and innovative hotel concepts to financial and operational performance. It also has enormous potential for growth, both in its home market of the US and globally. 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 and IHG have many things in common, not least our shared values and approach to building brands. As an owner of a significant number of Kimpton hotels through our real estate investment funds, I am committed to developing additional Kimpton hotels and I look forward to seeing Kimpton go from strength to strength as part of IHG.”