InterContinental Hotels Group to Acquire Kimpton Hotels for $430 Million
Skift Take
Boutique and lifestyle properties are the hottest segment in the hotel industry and with the acquisition IHG gets a foothold for an enhanced position in the segment.
InterContinental Hotels Group agreed to acquire Kimpton Hotels & Restaurants for $430 million in cash, a move that enhances its stature as a force in boutique and lifestyle hotels given the chain's existing Hotel Indigo and Even Hotels brands.
The acquisition of Kimpton, which manages 62 hotels in U.S. cities and resorts areas, and operates 71 hotel-based restaurants and bars, fits in with IHG's asset-light strategy.
IHG says the acquisition is particularly attractive because the boutique hotel segment is "the fastest growing segment in the industry."
"The transaction will be earnings enhancing in the first full year and achieve returns above IHG's cost of capital by year three," IHG states. IHG adds that it expects Kimpton's EBITDA (earnings before interest, taxes and amortization)
