IHG signs with Foncière des Régions to expand Kimpton brand in UK
InterContinental Hotels Group has today announced plans to expand its luxury and upscale estate in the UK.
The hotel giant has entered into a conditional agreement with Foncière des Régions to rebrand and operate 12 high quality open hotels and one pipeline hotel into its portfolio across the UK.
The group has 2,200 rooms in operation and a further 185 in the pipeline.
This deal will establish IHG as the leading luxury hotel operator in the UK, taking it to more than 2,000 rooms in this valuable, fast growing segment.
It will expand the presence for the InterContinental brand and enable IHG to launch its leading luxury boutique brand, Kimpton Hotels & Restaurants in the UK, adding multiple hotels for the brand in prime locations in major city centres, including London, Manchester and Edinburgh.
This marks an important step in IHG’s plans to take the brand global, building on the first signings for Asia and China last year, and will act as a catalyst for Kimpton’s growth in Europe.
This agreement will also strengthen IHG’s position in the upscale segment in the UK and will establish a presence for its new upscale brand, which will be launched later this year.
The brand, principally focused on conversion opportunities, will capitalise on the significant opportunity IHG has identified to offer consumers an informal but differentiated experience in the upscale segment, while offering owners a strong return on investment.
Keith Barr, chief executive, IHG commented: “We are focused on continuing to expand our leadership in luxury and upscale, which are both high-value segments with significant growth potential.
“Bringing Kimpton to such an important market as the UK is a key part of our plans, as is the introduction of our new upscale brand, which will provide an exciting, differentiated offering to both guests and owners.
“Together with the recent addition of Regent Hotels & Resorts to our portfolio, we are building real momentum behind our plans to deliver industry-leading net rooms growth.”
Properties in the deal include The Principal London, The Principal Manchester, The Principal Edinburgh Charlotte Square, The Principal York, De Vere Oxford Thames and De Vere Wotton House.
The Grand Birmingham, the pipeline hotel, will also be included.
IHG will operate the hotels under long-term “managed leases” as part of its luxury and upscale portfolio.