INTERCONTINENTAL Hotels Group (IHG) said yesterday it has agreed to buy an American chain of boutique hotels for $430m (£273m).
The hotelier, which owns the Holiday Inn and Crowne Plaza brands, has been expanding its stable of brands to appeal to new groups of customers.
In 2012, it launched Even hotels, a boutique chain for health-conscious travellers and introduced Hualuxe Hotels & Resorts in China that same year, which caters to Chinese travellers.
Chief executive Richard Solomons said its acquisition of Kimpton Hotels & Restaurants would make it “the market leader” in boutique hotels. Together with its other brands, Even and Indigo, it will have 200 open and planned boutique hotels in 19 countries.
Kimpton Hotels has 62 sites in major US cities including Chicago and New York and has another 16 in the development pipeline.
IHG said the cash acquisition would be earnings enhancing in its first year, with Kimpton’s core earnings expected to double by the end of 2017.