InterContinental Hotels Group (IHG) has agreed to acquire Kimpton Hotels & Restaurants for $430 million in cash. The Kimpton team will continue to be led by its current COO, Mike DeFrino.
Kimpton is the world’s largest independent boutique hotel and established F&B operator, managing 62 hotels in the U.S. with a further 16 properties in the pipeline. The company also operates 71 hotel-based destination restaurants and bars.
“Kimpton is a well-established and highly successful business that has built an industry leading position in the U.S.,” says Richard Solomons, IHG’s CEO. “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.”
Adds Kimpton CEO Mike Depatie: “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 U.S. 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.”
Adding Kimpton to IHG’s portfolio of preferred brands, alongside Indigo and EVEN Hotels, will create a leading boutique and lifestyle hotel business with more than 200 open and pipeline hotels across 19 countries. The boutique hotel segment has been the fastest growing in the hospitality industry over the last four years, with demand, supply, and RevPAR growth for boutique hotels in the U.S. each significantly outperforming the overall industry.
