Intercontinental Hotels Group (IHG) has completed the purchase of boutique hotel operator Kimpton Hotels & Restaurants, in a deal worth US $430 million.
The intended acquisition was announced towards the end of last year, with IHG saying it would establish the company as the “clear market leader” in the boutique hotel segment; it already has the Hotel Indigo and Even Hotels brands in its portfolio.
Kimpton Hotels & Restaurants manages 62 hotels in cities and resorts across the US, as well as 71 hotel-based restaurants and bars. It also 16 hotels in the pipeline.
In a statement to the London Stock Exchange on Friday, the company said: “Further to the announcement made on 16 December 2014, Intercontinental Hotels Group PLC is pleased to confirm that the acquisition of Kimpton Hotels & Restaurants Group LLC for cash consideration of $430 million has now completed.”
| Advertisement |
With the addition of the Kimpton portfolio, IHG had said it would have 200 open and pipeline boutique and lifestyle hotels across 19 countries.
And, while the Kimpton brad may currently be limited to the US, IHG said it saw “significant opportunity to expand the brand in Europe and Asia where there is strong demand for boutique brands”.
At the time of the announcement of the acquisition, IHG chief executive Richard Solomons commented: “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.”
Search our database of more than 2,700 industry companies
