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Intercontinental Hotels Group has agreed to acquire US brand Kimpton Hotels and Restaurants to create the largest boutique hotel business.
IHG, owner of the Holiday Inn and Crowne Plaza brands, will pay $430 million for the independent hotel group.
Kimpton is the largest independent boutique hotel operator and restaurant company in the US, where it manages 62 properties in 28 cities, IHG said in a statement. The San Francisco-based chain also has 16 hotels under development and operates 71 restaurants, bars and lounges.
“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,” said IHG CEO Richard Solomons.
“We will use our scale, network of owner relationships, and powerful digital platforms to accelerate Kimpton’s growth both within the US and internationally.”
Together with IHG’s other boutique brands, Indigo and Even Hotels, the group will have more than 200 open and planned boutique properties across 19 countries.
IHG said Kimpton’s EBITDA is expected to be around $20 million for the year ending December 2014 and expects to deliver growth in Kimpton to around $39 million by 2017 from the opening of hotels, and back office and technology savings.
Kimpton’s CEO Mike Depatie, said: “IHG is the ideal partner for Kimpton and has absolutely the right experience and specialist capabilities to help the business move to the next phase of rapid growth. Kimpton and IHG have many things in common, not least our shared values and approach to building brands.