Kimpton has the kind of engaged fan base that notices when a more generic lodging behemoth like InterContinental Hotel Group swoops in. The prompt backlash to the $430 million cash deal shows just how effectively Kimtpon cultivated customer loyalty. Many travelers were quick to assume that their beloved collection of 62 quirky properties where pets are welcome and leopard print robes hang in the closets will soon be corporatized into homogeneity by the parent company of Holiday Inn and Crowne Plaza. Kimpton has 16 additional hotels opening through 2018, and the takeover is designed to help Kimpton expand beyond the U.S.
"This is like if you found out your favorite burger joint is being taken over by McDonald's," says Henry Harteveldt, a travel analyst with Atmosphere Research Group in San Francisco. "I think it shows that there's great affection from the traveling public for Kimpton and its brand." His view was echoed on social media.
For InterContinental, the Kimpton collection offers one of the highest-grossing boutique operators in the hottest part of the lodging industry. Hilton Worldwide has made a major push this year into the boutique segment with its new Canopy brand, along with a push to create a collection of "remarkable" hotels that will be called Curio. Starwood Hotels & Resorts operates the W chain, one of the largest aimed at the discerning hotel shopper.
Kimpton will also serve as a premium vehicle for InterContinental's overseas boutique expansion while helping to fill a wide gap in IHG's portfolio between the luxury flagship brand and the company's own Indigo effort at creating charismatic hotels. "IHG has no real credible experience win the boutique sector," Harteveldt says, calling Indigo a "cheap and cheerful" lifestyle property. IHG has slowed Indigo's expansion in recent years.
While most modern hotels prize consistency in room design and the sensibility of their public spaces, Kimpton has adopted a different approach. Each property varies widely, and many occupy buildings converted from other uses. The service from the staff is "authentic and personalized," in the words of Richard Solomons, IHG's chief executive officer. "It's one of the few companies globally that we've considered acquiring," he told reporters on Tuesday.
Kimpton has also built its pet-friendly policies into a selling point: show up with your Great Dane and the desk staff knows not to flinch. The complimentary evening "wine hour" is part of company lore, traced back to Bill Kimpton's first hotel near San Francisco's Cow Hollow district in 1981. "They are as un-Holdiay Inn like in how they go to market as it gets," Harteveldt says. A Holiday Inn Express, on the other hand, is a model of low-cost consistency: a clean room for a quick stay without any surprises.
Unease from Kimpton superfans notwithstanding, IHG did not become one of the world's largest hotel operators by alienating its customers or denigrating successful businesses. Kimpton may not change much within IHG, to the joy of its partisans. IHG spokeswoman Zoe Bird said the company operates all its brands separately and would keep Kimpton distinct. "That's the approach we take with all of our brands," she said. "We nurture the brands."
