The hotel group strengthens its lifestyles brand portfolio with the acquisition of the American brand for 430 million dollars, or close to 344 million euros.
IHG will thus add to its portfolio 62 properties and 12,000 rooms, located in 28 of the country's primary cities and destinations as well as a pipeline of 16 other hotels and 3,000 rooms, 10 of which are under construction. In all, Kimpton operates 71 hotels, restaurants and bars. Owner of the brands Hotel Indigo and Even, InterContinental will become a major player in the lifestyle hotel segment, with more than 200 properties operating on the segment in 19 countries.
Kimpton will join the IHG network as a brand in and of its own. The hotel group wishes to accelerate the brand's development in the United States and internationally and plans to establish its presence on the European and Asian markets, where the demand for lifestyle hotels has been growing steadily for several years. InterContinental also wishes to improve the brand's financial results and raise its EBITDA to close to 39 million dollars by the year 2017, versus 20 million expected in 2014.
"We will use our scale, network of owner relationships, and powerful digital platforms to accelerate Kimpton's growth both within the US and internationally. The hugely talented Kimpton team will continue to be led by Mike DeFrino, currently Kimpton's COO, and I am delighted to welcome all of Kimpton's associates and owners to the IHG family," declared Richard Solomons, CEO IHG.
By adding 12,000 rooms to its portfolio, InterContinental Hotels Group could surpass 700,000 rooms worldwide. On January 1, 2014, IHG was the first hotel group worldwide in terms of number of rooms, with 686,873 units in 4,697 hotels, according to the ranking realized each year by MKG Hospitality, hospitality consulting firm founded by Georges Panayotis. Kimpton Hotels was 62nd in the global ranking. (read our report)
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