The biggest hotel company in Latin America and the Caribbean just got bigger.
InterContinental Hotels Group has paid $430 million in cash to acquire boutique hotel operator Kimpton, the largest independent boutique operator in the world.
Kimpton manages 62 hotels in the US, with 16 hotels in the pipeline, including one in the Cayman Islands.
“Kimpton is a well-established and highly successful business that has built an industry leading position in the US. It has created a portfolio of world-class hotels and destination restaurants, and the distinctive and innovative Kimpton brand will fit perfectly into the IHG brand family,” said Richard Solomons, CEO of IHG. “Adding Kimpton to our portfolio of preferred brands creates the world’s largest boutique hotel business.”
It’s not year clear what impact this will have on the Caribbean, but an expansion beyond the Cayman property is not out of the question.
“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,” Solomon said. “We will use our scale, network of owner relationships, and powerful digital platforms to accelerate Kimpton’s growth both within the US and internationally.”
Worldwide, IHG is involved in 4,700 hotels in almost 100 countries.
“Kimpton is a unique business with a strong track record of excellence in everything from design and innovative hotel concepts to financial and operational performance,” said Mike Depatie, CEO of Kimpton. “It also has enormous potential for growth, both in its home market of the US and globally.”
This article was published in the Caribbean Journal on December 23rd.