Accordingly, IHG has entered into a conditional agreement with Fonciere des Regions (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. The move will expand the InterContinental brand, and enable IHG to launch its luxury boutique brand, Kimpton Hotels & Restaurants in the UK, adding multiple hotels for the brand in major city centres, including London, Manchester and Edinburgh.
The agreement is a major step as IHG plans to take the brand global, expanding on the first signings for Asia and China last year, and will act as a catalyst for Kimpton’s growth in Europe. This agreement aims to strengthen IHG’s position in the upscale segment in the UK, and will establish a presence for its new upscale brand. These hotels will represent the IHG brand in its largest market within the Europe, Middle East, Asia & Africa (EMEAA) region, where it will initially be launched later this year.
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.’
Following FdR’s acquisition of the hotel properties and operations, IHG will operate the hotels that currently operate under the Principal Hotels and De Vere Hotels brands under long-term ‘managed leases’ as part of its luxury and upscale portfolio. The hotels include The Principal London, The Principal Edinburgh Charlotte Square, 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 and De Vere Wotton House.