IHG has agreed to acquire Kimpton Hotels & Restaurants – the world’s largest independent boutique hotel operator – for $430 million in cash. Kimpton is a fully asset-light business that manages 62 hotels in the most attractive cities and resorts in the US with a further 16 hotels in the pipeline. It operates 71 hotel-based destination restaurants and bars.
Acquisition makes IHG the clear market leader in the boutique segment, the fastest growing segment in the industry. Highly complementary with IHG’s Hotel Indigo and Even Hotels brands; creates a leading boutique and lifestyle hotel business, with over 200 open and pipeline hotels across 19 countries.
Richard Solomons, CEO of IHG, commented, “Kimpton is a well-established and highly successful business that has built an industry leading position in the US. 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.”