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This just in. InterContintinental Hotels Group agrees to acquire Kimpton Hotels group in an all cash transaction for $430 million. Wow, this is a game changer. Our experiences with Kimpton has been great. They have a great feel to their hotels and great service. While IHG has the breadth of products and some great promotions as well.
Our most favorite stay at any InterContinental Hotel was definitely the InterContinental Thalasso Bora Bora Resort & Spa.
InterContinental Hotels Acquires Kimpton Hotels
- IHG has agreed to acquire Kimpton Hotels & Restaurants (“Kimpton”) for $430 million in cash.
- Kimpton is the world’s largest independent boutique hotel operator and a sophisticated food and beverage operator.
- Kimpton is a fully asset-light business that manages 62 hotels in the most attractive cities and resorts in the US with a further 16 hotels in the pipeline. It operates 71 hotel-based destination restaurants and bars.
- Acquisition makes IHG the clear market leader in the boutique segment, the fastest growing segment in the industry.
- Highly complementary with IHG’s Hotel Indigo and EVEN Hotels brands; creates a leading boutique and lifestyle hotel business, with over 200 open and pipeline hotels across 19 countries.
- Significant opportunities identified for IHG to accelerate the growth of the Kimpton brand within the US and to launch it globally.
- Compelling financial rationale with Kimpton EBITDA expected to double by the end of 2017.
- The transaction will be earnings enhancing in its first full year and achieve returns above IHG’s cost of capital by year three.
In a statement from IHG, Richard Solomons, Chief Executive Officer 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.
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.”
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