IHG to Acquire Kimpton for $430M, Making Company the World’s Largest Boutique Hotel Operator

InterContinental Hotels Group has agreed to purchase Kimpton Hotels & Restaurants in a deal that will solidify the company as the world’s largest boutique hotel business.

A deal is set to conclude in the first quarter of 2015 that has InterContinental Hotels Group (IHG) purchasing Kimpton Hotels & Restaurants. The $430 million acquisition will catapult IHG to the largest boutique hotel business in the world.

Kimpton is the world’s largest independent boutique hotel operator, with 62 hotels in the U.S. and another 16 in the works. The company owns an additional 71 hotel-based bars and restaurants. When the deal is complete, IHG will operate more than 200 hotels in 19 countries. The company plans to expand the Kimpton brand globally once the acquisition is final.

As of now, all Kimpton employees will remain with the company.

“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,” said Richard Solomons, CEO of IHG. “The culture and values of both companies are well aligned and Kimpton will bring a wealth of expertise and specialist skills to IHG.”

The boutique hotel segment shows the fastest growth in the hospitality industry, and IHG plans to capitalize on that opportunity for expansion with the purchase of Kimpton. IHG also hopes to enhance its current brand portfolio with Kimpton’s expertise in the dining and design spaces.

For Kimpton, the future with IHG looks optimistic.

“As an owner of a significant number of Kimpton hotels through our real estate investment funds,” said Mike Depatie, CEO at Kimpton, “I am committed to developing additional Kimpton hotels and I look forward to seeing Kimpton go from strength to strength as part of IHG.”

[Photo: Kimpton Hotels & Restaurants]