IHG to become largest luxury hotel operator in the UK, deal to include first UK properties for Kimpton Hotels & Restaurants
Denham, United Kingdom, 2018-May-04 — /Travel PR News/ — InterContinental Hotels Group (“IHG”) [LON:IHG, NYSE:IHG (ADRs)] has today announced plans to expand its luxury and upscale estate in the UK. IHG has entered into a conditional agreement with Foncière des Régions (“FdR”), to rebrand and operate 12 high quality open hotels (2.2k rooms) and one pipeline hotel (185 rooms) into its portfolio across the UK.
This deal will establish IHG as the leading luxury hotel operator in the UK, taking it to more than 2k rooms in this valuable, fast growing segment. It will expand the presence for the InterContinental brand, and enable IHG to launch its leading luxury boutique brand, Kimpton Hotels & Restaurants in the UK, adding multiple hotels for the brand in prime locations in major city centres, including London, Manchester and Edinburgh. This marks an important step in IHG’s plans to take the brand global, building on the first signings for Asia and China last year, and will act as a catalyst for Kimpton’s growth in Europe.
This agreement will also strengthen IHG’s position in the upscale segment in the UK, and will establish a presence for its new upscale brand, which will be launched later this year. The brand, principally focused on conversion opportunities, will capitalise on the significant opportunity IHG has identified to offer consumers an informal but differentiated experience in the upscale segment, whilst offering owners a strong return on investment. These hotels will provide high-quality representation for the brand in IHG’s largest market within the Europe, Middle East, Asia & Africa (EMEAA) region, where it will initially be launched.
Keith Barr, Chief Executive Officer, IHG commented: “We are focused on continuing to expand our leadership in luxury and upscale, which are both high-value segments with significant growth potential. Bringing Kimpton to such an important market as the UK is a key part of our plans, as is the introduction of our new upscale brand, which will provide an exciting, differentiated offering to both guests and owners. Together with the recent addition of Regent Hotels & Resorts to our portfolio, we are building real momentum behind our plans to deliver industry-leading net rooms growth.”
Transaction overview
The Principal Edinburgh George Street
The Principal Met Hotel (Leeds)
The Principal York
De Vere Oxford Thames
The Grand Birmingham (pipeline)
The Principal Manchester
The Principal Blythswood Square (Glasgow)
The Principal Grand Central (Glasgow)
The Principal St David’s (Cardiff)
The Principal Oxford Spires
De Vere Wotton House
– fund any shortfalls in rent payments up to an annual and cumulative cap on losses of ~£16m ($22m) and ~£48m ($66m) respectively at stabilisation; and,
– retain a share of profits after rent payments.
For further information please contact:
Zoë Bird
zoe.bird@ihg.com
+44 (0) 1895 512 008
SOURCE: InterContinental Hotels Group
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