Hospitality giant InterContinental Hotels Group has agreed to acquire boutique hotel brand Kimpton Hotels & Restaurants, the companies announced this week.
IHG will pay $430 million for the San Francisco-based chain, which manages 62 hotels in the United States, including downtown’s Epic Miami, Surfcomber Miami in South Beach and The Angler’s Miami in South Beach. Known for its perks such as nightly wine hours, pets-welcome policy and free bicycle use, the company has another 16 properties in the pipeline.
The transaction is expected to close in the first quarter of 2015.
In a statement, IHG chief executive officer Richard Solomons called Kimpton “a well-established and highly successful business that has built an industry leading position in the U.S.” With more than 4,700 hotels, InterContinental Hotels Group brands include InterContinental, Crown Plaza and Holiday Inn as well as boutique brand Hotel Indigo and health-focused EVEN Hotels.
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“Adding Kimpton to our portfolio of preferred brands creates the world’s largest boutique hotel business,” Solomons said.
Mike DeFrino, chief operating officer of Kimpton, will lead the brand. CEO Mike Depatie will no longer have an executive role, but will remain involved as an owner of several Kimpton hotels and developer of future branded properties through the Kimpton Real Estate Investment Funds.
In an announcement about the acquisition, the companies said Kimpton’s earnings before interest, taxes, depreciation, and amortization is expected to be about $20 million in 2014. By 2017, EBITDA is expected to reach $39 million.