InterContinental Hotels to buy KimptonHotels for $430 mn
16 December 2014
InterContinental Hotels Group (IHG), one of the world's largest hotel chains, today struck a deal to buy KimptonHotels & Restaurants, for $430 million in order to expand its chain in the US.
IHG, which owns the Crowne Plaza, Holiday Inn and InterContinenal brands, said that the deal also reduces IHG's tax bill by $160 million.
''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 in a statement.
With 62 hotels in the US and 16 hotels in the pipeline, Kimpton is the world's largest independent boutique hotel and food and beverage operator.
It currently operates 62 hotels with over 11,000 rooms in 28 key cities across the US, and has 16 hotels with nearly 3,000 rooms in the pipeline.
Kimpton operates under the Kimpton brand, which includes Hotel Monaco, Hotel Palomar, FireSky Resort & Spa and others, which have a total of 71 restaurants, bars and lounges.
IHG said that the acquisition will make it a market leader in the boutique segment, the fastest growing segment in the industry and is complementary with its subsidiaries Hotel Indigo and EVEN Hotels brands, which will create a leading boutique and lifestyle hotel business, with over 200 open and pipeline hotels across 19 countries.
IHG expects to fund the deal through existing cash resources and new debt facilities, and expects to close during the first quarter of 2015.
Denham, UK-based IHG owns a broad portfolio of nine hotel brands, including InterContinental Hotels & Resorts, Hotel Indigo, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels & Resorts, Holiday Inn Express, Staybridge Suites, Candlewood Suites, EVEN Hotels and HUALUXE Hotels and Resorts.
IHG franchises, leases, manages or owns over 4,700 hotels and 697,000 guest rooms in nearly 100 countries, with almost 1,200 hotels in its development pipeline.