ATLANTA — Kimpton Hotels & Restaurants, the San Francisco-based boutique hotel and food-and-beverage operator, has joined the InterContinental Hotels Group PLC (IHG).
The Atlanta-based hotel company announced it acquired Kimpton for $430 million in cash. Kimpton manages 62 hotels in the U.S., operates 71 destination restaurants and bars, and has 16 hotels in the pipeline.
With the addition of Kimpton’s properties to IHG’s EVEN and Hotel Indigo brands, it will help fuel a boutique and lifestyle hotel business. The IHG team has also identified opportunities to grow the brand in the U.S. and expand it globally. “Kimpton is a well-established and highly successful business that has built an industry-leading position in the U.S. 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,” said Richard Solomons, CEO of IHG. “Adding Kimpton to our portfolio of preferred brands creates the world’s largest boutique hotel business.”
Kimpton has achieved 7.7-per-cent same-store RevPAR growth in the last five years as well as a four-per-cent per annum growth in system size. Its EBITDA is expected to be approximately $20 million for year-end December 2014.
The transaction is expected to close during the first quarter of 2015.