InterContinental Hotels expands luxury and upscale estate in the UK

IHG said the deal will establish it as the leading luxury hotel operator in the UK, taking it to more than 2,000 rooms in this segment. It will 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.

In addition, the agreement will strengthen the company's position in the upscale segment in the UK and establish a presence for its new upscale brand, which will be launched later this year.

Chief executive officer Keith Barr said: "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."

The deal is expected to close in the second or third quarter of this year, subject to certain customer conditions.