IHG to Buy Kimpton for $430M in Cash
Mega-hotel operator IHG plans to ramp up expansion of the Kimpton brand, both domestically and internationally.
IHG is paying $430M in cash for Kimpton, the world's largest independent operator of boutique hotels. Kimpton has 62 properties across 28 US cities, including eight in its home city of S.F. IHG CEO Richard Solomons says Kimpton fits nicely with the company's recent push to grow in the red-hot boutique space, with its Hotel Indigo and EVEN Hotels brands, which has more than 200 hotels open and in the pipeline across 19 countries.
According to IHG, Kimpton staff will remain with the company. Kimpton CEO Mike Depatie says as an owner of a significant number of Kimpton hotels through the company's real estate investment funds, he will remain committed to developing more hotels. The sale comes as the hotel market has been on fire. Kimpton Hotels VP Jesse Stein, speaking at Bisnow's hospitality event this fall, said he feels the upswing in the cycle will continue for the foreseeable future, even hinting at some potential upgrades for the brand.