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Kimpton Hotels and Restaurants to be acquired by InterContinental Hotels Group

Date:17-12-2014

InterContinental Hotels Group has announced the acquisition of Kimpton Hotels and Restaurants, the most well-known U.S. boutique hotel brands. InterContinental Hotels Group is the largest hotel chain worldwide by the number of rooms.

InterContinental Hotels Group will pay $430 million in cash for the biggest boutique hotel operator in the United States. In the US, it has 62 hotels which include The Angler’s Miami and Surfcomber Miami in South Beach, and Epic Miami. Kimpton is known for its facilities such as free bicycle use, pets-welcome policy and nightly wine hours. The company has 16 properties in the pipeline.

According to the CEO of IHG, Richard Solomons, Kimpton is a highly successful and well-established business which has built itself into an industry leading position in the United States. With over 4,700 hotels, InterContinental Hotels Group brands include Holiday Inn, InterContinental and Crown Plaza and the boutique brand Hotel Indigo, as well as health-focused EVEN Hotels.

The deal is expected to close in the first quarter of 2015. Kimpton’s chief operating officer, Mike DeFrino, will lead the brand. He will remain involved in the business as an owner of few Kimpton hotels and developer of future branded properties through the Kimpton Real Estate Investment Funds.

Richard Solomons, the CEO of IHG said that this company wanted a stake in what he believes to be the fastest-growing segment of the hotel industry.

He added that San Francisco- based, Kimpton, had been seeking a potential buyer. Solomons quoted that they were delighted to have the opportunity to acquire this business.

Solomons said that that they are buying this business because of the capability it brings, their brilliance in food and beverage and design.

Both the companies said that Kimpton’s earnings before interest, taxes, depreciation, and amortization is expected to double from $20 million to $39 million by the end of 2017.

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