IHG to buy Kimpton brand with plans for global rollout

16 December 2014 by
IHG to buy Kimpton brand with plans for global rollout

IHG is to acquire the US-based Kimpton hotels and restaurants for £275m and roll the brand out globally.

Kimpton describes itself as the world's largest independent boutique hotel operator, with 62 hotels across the US and a further 16 in the pipeline. It also operates 71 hotel-based restaurants and bars.

IHG said it had plans to double Kimpton's current £13m EBITDA by the end of 2017. Kimpton currently achieves growth of 4% per annum in system sales and has seen a 7.7% growth in comparable revpar in the last five years.

The deal will complement its Hotel Indigo and Even hotels brands and make it the market leader in the boutique sector. IHG said it would now accelerate the growth of the Kimpton brand, within the US and globally.

IHG chief executive Richard Solomons 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."

Kimpton will continue to be led by chief operating officer Mike DeFrino, Solomons added.

Mike Depatie, chief executive officer of Kimpton, said: "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."

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