IHG buys Kimpton Hotels to integrate Kimpton Karma Rewards

Posted on December 17, 2014 by in IHG Rewards Club


IHG buys Kimpton Hotels to integrate Kimpton Karma Rewards

IHG has agreed to take over Kimpton Hotels for $430 million in cash.

I have never stayed in a Kimpton hotel myself, but have heard good things about them. And the major chains ARE interested in adding boutique hotels to their portfolios of hotels.

Kimpton had $905 million in revenue in 2012. It had 6,996 employees at the end of 2012. That's a rather low ~$128,000 per employee/year in revenue.

The SF company had been rated #28 best company to work for in 2013 by Fortune.

There aren't any publicly available numbers about profitability on this huge revenue the company shows.

$430 million in cash sounds very little for a billion dollar company. It seems Kimpton was barely profitable and still investing most of the money into expanding the chain. The 34-year old chain has 60 hotels in 27 cities, mostly in the US.

That's a great deal for IHG and an easy head start on the Marriott Autograph Collection hotels and Marriott Edition hotels.

Kimpton Karma Rewards got great reviews – I'm not sure if members will be so enthusiastic about IHG Rewards Club and its less than stellar IT and Public Relations.

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About the author: Torsten is a serial entrepreneur who started almost a dozen ventures on four continents. Torsten's love for travel has brought him to 130+ countries and travel with most of the world's airlines. You can reach Torsten at [email protected]

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