InterContinental Hotels Group has agreed to acquire Kimpton Hotels & Restaurants for $430 million in cash.
Kimpton, a fully asset-light business, is the world’s largest independent boutique hotel operator and a sophisticated food and beverage operator.
It presently manages 62 hotels in the most attractive cities and resorts in the US with a further 16 hotels in the pipeline.
Kimpton also operates 71 hotel-based destination restaurants and bars.
The acquisition makes IHG a market leader in the boutique segment, the fastest growing segment in the hospitality industry.
Richard Solomons, chief executive of IHG, commented: “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.”
IHG hopes the brand will complement its existing Hotel Indigo and EVEN Hotels brands.
Together the three create a leading boutique and lifestyle hotel business, with over 200 open and pipeline hotels across 19 countries.
“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,” added Solomons.
“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 Kimpton team will be led by Mike DeFrino, currently Kimpton chief operating officer.
Kimpton was established in 1981, and is the largest independent boutique hotel and restaurant business in the US.
It manages 62 hotels with 1,300 room, across 28 cities in the US in attractive urban and resort locations such as Boston, Chicago, Florida, Los Angeles, New York, San Francisco, Seattle and Washington D.C.