IHG moves in on UK luxury market with 13 hotels and new upscale brand
by Tom Walker | 09 May 2018
The Principal hotel in London is one of the properties to be operated under IHG following the deal / David Iliff. License: CC-BY-SA 3.0
InterContinental Hotels Group (IHG) is to expand its luxury estate in the UK after securing a deal to rebrand and operate 13 upscale hotels.
IHG will operate the properties on behalf of French real estate group Foncière des Régions (FdR), which acquired the hotels from an affiliate of Starwood Capital Group for a reported US$1.1bn (£830m) earlier this month.
The deal will see IHG introducing its boutique brand, Kimpton Hotels & Restaurants, into the UK, with some of the 13 properties being managed under the Kimpton flag.
The group will also use the new properties to launch an entirely new luxury brand to the market.
The as yet unnamed brand will be launched later this year and – according to a statement from IHG – the UK will be the launch pad for what will become a global luxury chain.
"The new brand will capitalise on the significant opportunity we have identified to offer consumers an informal but differentiated experience in the upscale segment, while offering owners a strong return on investment," the statement reads.
"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, IHG chief executive, added: “We're 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.”
The 13 hotels included in the deal currently operate under the Principal Hotels and De Vere Hotels brands.
The 13 hotels to be managed by IHG under the Kimpton and new luxury brand:
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 (still being developed)
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
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InterContinental Hotels Group (IHG) is to expand its luxury estate in the UK after securing a deal to rebrand and operate 13 upscale hotels. IHG will operate the properties on behalf of French real estate group Foncière des Régions (FdR), which acquired the hotels from an affiliate of Starwood Capital Group for a reported US$1.1bn (£830m) earlier this month. The deal will see IHG introducing its boutique brand, Kimpton Hotels
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