IHG buys Kimpton Hotels to integrate Kimpton Karma Rewards

Posted on December 17, 2014 by in IHG Rewards Club

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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