Kimpton Hotels and Resorts are some of the most unique, premium hotels in the world – which is why they have no place with IHG.
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Kimpton Fills A Unique Market Position
Kimpton, IHG’s smartest acquisition, was purchased to fill a mid-market gap with modern hotels and a cool factor reminiscent of W, Andaz, and Edition. Kimpton focuses on design and plays to a young, affluent crowd though many of their properties are rather affordable. W Hotels is a lot more money for a similar product, Andaz too, but the latter is just a little less loud than W. Kimpton, has the design and, for lack of a better word, sass, of W without the hefty price point.
Kimpton is a small chain (just 1.2% of IHG’s portfolio) upmarket of Indigo, but more accessible than the newly acquired Six Senses.
IHG Is Just Terrible
For all of its faults, IHG has identified its market gaps: luxury, lifestyle, resort – and has worked to bring brands in to fill those gaps. For the top end of the market, Regent was acquired by the hotelier to compete with Park Hyatt, Waldorf-Astoria (Hilton), St. Regis, and Ritz-Carlton (Marriott.) At the time it the 51% stake was purchased, Regent was just six properties; IHG intends to grow it to 40 hotels. For one of the world’s largest chains (6,031 hotels worldwide), a six property entrance into the $60bn luxury hotel market sums up the brand’s approach nicely.
Intercontinental Hotel Group cannot be trusted with the long-term survival of a meaningful loyalty program. Kimpton developed its own, Inner Circle, with great perks and a unique culture. They promoted a “secret word” its members could say at check in that would deliver a Kimpton Inner Circle gift; both the perks and secret word changed quarterly keeping members engaged.
Meanwhile, IHG doesn’t offer late guaranteed 4 pm checkout, free breakfast, nor confirmable upgrades to its most loyal IHG Rewards Club customers amassing 75 or more stays in a calendar year. To get some (but not all) of those benefits you’d need to apply and pay $200 – and that only corresponds to Platinum status.
IHG Rewards Club points have devalued its redemptions over the last few years from 50,000 points as the highest category to trying to sneak in a hike to 120,000 during the pandemic. They ultimately retreated following substantial vitriol from members. The credit card delivers little value when compared with competing brands and they don’t seem to care. It doesn’t help to earn IHG Rewards points if they devalue faster than other programs for hotel stays you rarely want to book anyway.
As much as I dislike Marriott Bonvoy, even that program is more trustworthy and delivers more value than IHG and would be a better home for the brand.
IHG hates its elites. Even as a Business Edge IHG Rewards member, I found little value in the program and virtually no access to Rewards Club Customer Care Center help for large bookings of many guests for an extended period of time.
Why IHG Should Sell Kimpton
IHG has helped Kimpton grow from a few dozen properties to 75 in 50+ cities. Is there a more perfect time to sell? IHG has been able to acquire the brand, add customers (whether they are a good fit or not, more on that below), add value and now can sell a far more mature brand with greater reach.
The reason why other brands are able to grow and build a following with their premium brands is that their offerings are broader. Premium brands at SPG represented a far larger percentage of its portfolio. Hyatt also has a significant amount of their brand coming in above select service categories (Hyatt Place, Hyatt House) and Marriott does a better job of this than IHG. Here’s a great example as to why:
A premium guest who spends time at Intercontinental properties for work in major cities, wants to relax on vacation with her family. In Hawaii, for example, there are just two properties – none of them full service. In Barcelona, all of the choices for IHG are sub $100/night with the exception of the Intercontinental, a Kimpton, and a Hotel Indigo. We find the same limited offerings outside of select service in Rome. A premium business traveler does not want to stay in the Holiday Inn Express Waikiki.
It doesn’t fit with the rest of their brand because it doesn’t fit with their customer base. The majority of customers are Holiday Inn customers (I’m not throwing shade, it was the best hotel in a city I worked in extensively and I earned Spire status because of it) but those are rarely willing to pay the premium for Kimpton. That said, some Kimptons are priced below where they could be with a more premium customer base and marketing that works for those brands.
Conclusion
I really enjoy Kimpton hotels. Each one I have visited delivers a cool factor worthy of a premium. If they were part of a loyalty program where I had a broader range (both up and down lines) I’d be far more likely to choose them as often as possible. The reason I don’t is because there aren’t enough of them to make them my primary chain, and there’s simply not enough other quality brands in a loyalty program that returns value to me. For IHG’s part, they have built up the brand and can turn a profit on the larger product, but Kimpton just doesn’t fit in with the rest of its customer base.
What do you think? Should IHG sell Kimpton? Should it keep the brand and grow it?
Kimpton was on the market. Someone was going to buy them. Hyatt was a bidder, but IHG was willingt o massively overpay.
The irony is that they were trying to buy something unique and hip they couldn’t create themselves, and they homogenized it out of Atlanta. And it’s been a money-loser for them.
They probably *should* sell Kimpton but they won’t.
In addition to being a covid expert, Gary is now a world class financial analysts. And still giving away advice for free. Lucky us.
@Miamiorbust – FWIW, I believe Gary has a financial background and has been featured on several news networks discussing the industry. He’s certainly qualified.
*drops mic*
@Miamiorbust: Gary holds senior management position in Finance/Accounting
A person can qualify for top tier IHG status in less than 10 stays even under non-pandemic qualifying if you stack points opportunities by buying points packages during booking that generally price out at 0.5 cent. Qualifying requirement more akin to hilton or marriott mid tier status. Top tier IHG elite get 2x points earning and one of the quickest paths to earning substantial number of free nights. And the footprint in second tier cities is bigger than any other chain. Easy to find hotel to earn points to be redeemed at a Kimpton. No breakfast? Go out to a local coffee shop and actually experience the location you are in. For people that actually spend money at hotels regularly but aren’t true corporate road warriors, IHG and kimpton are a nice fit.
It’s also no status benefits on an award, no guaranteed checkout time, confirmable upgrades.
It’s a fine program for piling up points and burning them immediately because the program devalues in real time… and if that’s your thing, you do you. It’s not really a good loyalty program, but as a rebate on your spend they are fine, as long as you realize they’re doing the absolute minimum they can do as a “loyalty program”. And there’s nothing wrong with HIXes and Candlewood Suites if they suit your price/location/service needs.
Maybe people who book low end rooms and want a free upgrade to a suite are not IHG’s target market?
@Si – It might behoove them to switch.
2019 Hilton Revenue – $1.495MM/property
2019 Marriott Revenue – $2.85MM/property
2019 Hyatt Revenue – $5.498MM/property
2019 IHG Revenue – $0.767MM/property
For what it’s worth, Hilton and Marriott have the most comparable number of hotels, each of them over 6,000.
Kimpton IS IHG’s brand to fill the luxury / resort niche. Aside from Intercontinental, Six Senses, Indigo & Regent, this is the brand IHG has to rely on. There are a few Holiday Inn Resorts, Crowne Plaza Resorts – but they appeal to the lower end.
Hyatt and IHG both have different problems, that they are approaching in similar ways. Hyatt lacks select service hotel offerings in many 2nd/3rd tier cities. IHG lacks resort / luxury offerings in most desirable locations. Both brands are making strategic acquisitions, and slowly developing the properties (from the ground up, or through hotels switching brand affiliation).
With respect to elite benefits at luxury or resort hotels; just look at how Hilton and Marriott approach the topic. Ritz Carltons do not offer anything to top Marriott members. When it comes to recognizing their members, Hyatt defines what excellence is.
I know Kimptom members were not fans of being absorbed in to IHG; but IHG members are fans of it. Between Kimpton, Six Senses, Indigo, Intercontinental, Regent – I think IHG has the right idea. IHG just needs to expand the breadth of luxury properties now (ski in ski out, beach resort, city getaway).
This is a very US-centric view of IHG and its business. To begin with, IHG is a British company.
Hotel loyalty schemes aren’t that popular outside of the USA, particularly among those of us who don’t have to constantly make business trips- in my social circle, there are quite a few people who have airline status purely on the basis of leisure travel while I can only think of one person about whom the same is true for hotels. I couldn’t care less about whether I end up with no, silver, or gold status with Accor- if the Novotel is €30 less than the Marriott for the same type of room/level of service, I book it. If the NH is another €15 cheaper than the Novotel, I book that instead.
Moreover, your claims that the ‘majority of customers are HI customers’ and the assumption that they are not willing to pay a premium to stay in an upmarket hotel are dubious, particularly since some Holiday Inns are actually pretty upmarket. Here is an example of one, from a city where IHG has 16 properties compared to Hyatt’s 4 (which is a lot better than many major European cities where there is none): https://www.ihg.com/holidayinn/hotels/us/en/guangzhou/canle/hoteldetail/hotel-room-rates#
Similarly, there is no point in mentioning a specific amount as an example of a high/low rate in the context of a global chain- $100 may not be sufficient for a basic room in a 2-star hotel in Oslo while it could easily get you a suite in a 5-star property in Buenos Aires (as long as you are clued up on the dual exchange rate).
I also presume you don’t have any information as to how much value the IHG credit card gives the Shenzhen-based business traveller who spends time in some of the 16 IHG properties in Guangzhou every year- or even whether such a card is available to PRC residents.
I mean, I know that this is an entertainment blog, but it surely can’t hurt to do a bit of sense-checking before posting something like today’s post.
@PM – I see we have a fan of IHG. Let’s explore these segments one by one.
Are hotel loyalty schemes US-centric, they are outside of Accor. But in the case of IHG – British-owned as you point out – has 65% of its properties in the US. That doesn’t include Canada which has a similar travel base to the US. On that same note, you mention the Shenzhen-based credit card holder, but affinity cards are mostly a US ambition too so I am unsure whether a Chinese offering is even available.
You give an example of shopping around for the best rates for your own stays and I am unsure how makes the case for Kimpton and loyalty.
Choosing Guangzhou as your example market of “pretty upmarket” does the opposite of executing your point. Why? Because almost all global chains have far nicer properties in Asia than their representatives back home.
Here is a Park Hyatt in Shenzhen that sells for $200-250/night, in New York, it would be $1000. https://bitly.com/3mbpewS
Here is a Hyatt Regency in Bangkok for $100-120/night that far surpasses comparable Regency business hotels in the US for less than half the price: https://bit.ly/3pyx6uu
Choosing the Asian market which elevates even the lowliest of the select-service brands is a farce.
It’s okay if you love IHG or want Kimpton to stay with the brand. That’s fine. But the reasons you’ve given which ignore vast swathes of information doesn’t make my post untrue or “entertainment.”
I am perplexed as to why you think I *love* IHG, since I never said as much. I am pretty confident it’s been more than five years since I last stayed in one of their hotels- I find most of their hotels in the markets/price points I am interested in to be uninspiring and offer mediocre value for money. I may very occasionally consider a HI Express near a motorway junction in the UK if I have a long journey, or a Crowne Plaza in continental Europe, but I usually end up staying in an Accor property or an independent hotel.
The point I was making, which has also been made in other comments, is that hotel loyalty schemes, and certainly elite status, are not such a big thing outside of the US; people may collect some points, but they generally won’t make an effort to get status. It is far from unusual to have to ask receptionists at Novotels etc for the welcome drink voucher- outside of France, many of them don’t deal with status holders on a daily basis.
Even if IHG have a lot of hotels in the Americas, they are a UK based company with Asia as their major focus in terms of growth. That’s the point about China, and not the level of service, which actually is far from universally polished- my last stay in a 5* hotel in the PRC was marred by the cleaning team waking me up at 7:45 each morning. Even when I told reception to do away with the nonsense and they finally stopped knocking on my door, they would make enough noise in the corridor to disturb my sleep.
In that context, it is no surprise that elite perks and credit cards are not as big a priority for IHG as it is for the likes of Marriott (having said that, they do have a couple of well-regarded credit cards here in the UK).
@PM – We could do this all day, but won’t.
1) It may be UK based but in addition to already owing 65% of all properties to the US market alone, the Americas remains the focal point with 43% of all new additions to the group – Asia accounts for just 29% of property growth according to IHG’s own investor presentations.
2) Whether the company is based in the UK or not, 2/3rds of their business and almost half of their future growth is in a market that does value loyalty programs. It would be absolutely stupid to ignore that.
3) You’re right, however, they don’t care about loyalty and I have said that many times, linked to it, we agree.
4) It’s still not a market fit and as Gary pointed out, it’s a loss leader for them anyway. Get it to a home that cares about the things that IHG doesn’t.
5) Some IHG members would be upset if Kimpton was sold, but you’d be hard-pressed to find a Kimpton loyalist (pre-IHG) that would be upset if the brand found another home.
Holiday Inns in Europe are NOT upmarket. More expensive, yes. But so is everything else in Europe. Fact is, IHG (overall) is quite a bit downmarket of the likes of Hyatt, Hilton and Marriott. It is upmarket of Choice Hotels, which is another one that Europeans seem to like, but which I quit using because too many of their hotels were dumps.
Everything in this article is (sadly) true. I have platinum status in IHG rewards and intend to shift that business to Hilton next year. Why? Because of the lack of any apparent benefit to status with IHG and because too many of their hotels are too average. Not nearly enough aspirational properties, and those that try are often not as well executed as the competition is.
I was expecting this piece to expound on how Kimpton has changed since the aqusition… Or how Inner Circle used to only require ten stays, and now requires an undisclosed combo of nights and spend that well exceeds ten stays.
But instead the argument was just “IHG sucks, so Kimpton should leave.”
Meh.
I adore Kimpton. Seven of my 10 favorite hotels are Kimptons. However, I only found them because of their IHG affiliation… So it makes sense for them to want to be under a larger brand’s umbrella.
Kimpton has maintained most of its identity. There are a few bad apples, but I’m sure there were before the aqusition too. There will always be individual property managers that cut corners. (Like my recent Kimpton stay where they had house cleaning filling the bath product bottles with a cheap off brand. I think there was a legit supply chain issue with the usual AB products… but a property like Kimpton should spring for a substitution that’s better than what Motel 6 offers…. and puting the mystery product into the AB bottles is terribly missleading and is going to give new to Kimpton folks a sour taste for the brand!)
Also…. Inner Circle is, even without breakfast, the best elite benefit tier out there. Who else offers a guarunteed, NOT subject to availability, one category room upgrade, or guarunteed 10 am check in and 4 pm check out? These benefits alone are worth far more to me than the terrible Continental breakfasts or meager credits that won’t even cover an oatmeal and coffee offered by most Mariotte and Hilton properties. Plus, the waived ammenity fee benefit of inner circle saves you $20-$40 a day, which you could then spend on breakfast anywhere you like.
Paul – Thanks for reading and for your comment. Like you, I adore Kimptons and want them under a larger brand’s umbrella, but IHG is the wrong umbrella.
You make salient points with regard to top-tier elite treatment at Marriott and Hilton but neglect Hyatt. As a Globalist (before that a Diamond member) with Hyatt for about a decade, I have been denied a 4 pm checkout once, early check-in hasn’t been a problem. You’re also underselling the breakfasts benefit most Hyatts.
Stumbled randomly on this again; the magic of the interwebz!
Took me far longer than I’ll admit to figure out I was reading my own comment
Indeed, I had never given Hyatt a chance in 2021.
I had landed inner circle quite by luck (I certainly hadn’t spent anywhere near the mysterious undisclosed that first year).
My enchantment with kimpton lead me to stay at nearly 40 different properties one year… but has faded after a few too many bad apples…
I 100% agree that Hyatt globalist takes the cake.
Also it seems telling that i’ve been seeing a few of my favorite kimptons reflag as independent hotels. Obv IHG is doing something wrong.
I really used to like Kimpton for many of the reasons you describe. They lost my business when they joined the “destination fee” craze currently plaguing the mid-to-high end city hotel market. I frankly don’t care if they stay with IHG or go back to being independent – they’re not getting my business back until they ditch the junk fees. Yes, I know I’m tilting at windmills since nobody else cares.
I agree. DC for example has plenty of Kimptons and ICs to choose from, but the Kimptons had resort fees. I couldn’t justify paying that fee on top of the points for a rewards stay.
I only stay at IHGs to use my free credit card night, so I think I generally get what I pay for.
As a Spire, I’ve been looking forward to try Kimpton, but the footprint is still really small. I’ve guessed Warsaw (or whole Poland for that matter) didn’t have any, but it was shocking Dubai doesn’t have any. Greater Tokyo has one, but when it costs triple whether in cash or points than an Intercontinental, I’m not willing to gamble.
IHG used to be great till 2019 when they had pointbreaks and a lot richer promos. I’ve had Hilton match my status, and I’ve moved most of my stays.
Having sat behind the curtain for some time, I highly doubt Keith Barr, confidantes and puppeteers are savant enough to flip Kimpton on for a profit. They certainly *should* as it’s not a performing segment of their business.
IHG Have a ways-to-go before they can strategically compete in any segments other than their long standing brands (HI, IC, CP etc) . The approach is still cookie cutter. What happens is they flow cash into the properties but subject the commercialisation practises to the same business approach as entirely different beasts in entirely different prairies.
I have to agree they are just not going to be able to honour the brand foundations established by Kimpton, Six Senses or tired old Regent.
IHG certainly does suck… Even in Guangzhou.
It’s a shame Hyatt didn’t pay more because I think they would have fit so well with the Hyatt brand. However, from the standpoint of an IHG “elite,” Kimpton is as good as it gets. You get free wine, you get a daily credit for plat status, and you often get something for the secret password. To use a Lufthansa term… That’s enough freebies to make you feel elite.
“In Barcelona, all of the choices for IHG are sub $100/night with the exception of the Intercontinental, a Kimpton, and a Hotel Indigo”
So it seems like you have three choices in Barca, no?
@Jim – Thanks for reading and for writing. The issue isn’t whether or not options exist, it’s whether or not the premium business traveler has mid-tier to luxury options to satisfy them on vacation. Hotel Indigo really doesn’t fit that bill, so guests in Barcelona really have a business hotel option, a Kimpton, and a poorly fit Indigo.
If you look at other brands, there are more premium options in vacation destinations.
I enjoyed Kimpton years ago in DC. Didn’t realize IHG owned them now but haven’t stayed there in years. I’m in the top spire in IHG’s program and wonder why I stay. If they want to be lux only then sell Holiday Inn and it’s brands too.
Totally agree. I used to always stay at Kimotons. IHG ruined the awards program, amenities and I feel that Kimptons are not run as well now.
Long time Inner Circle member. IHG has managed to drag down many Kimpton properties, instead of being raised up by them. Also it’s almost impossible to find decent rewards points redemption availability. And when you do, the number of points is insane.
While I stayed at many IHG properties, only once I tried Kimpton Hotel – in Savanna, Georgia. And what a total disappointment it was: complete rundown hotel with rusted furniture, disgusting rusted shower heads, dirty beds and sheets, and so on… I expected to be upscale experience, instead I wished that I booked Holiday Inn nearby.
Rooms were tiny, dirty, windows blocked and covered with dust, unusable showers, rusted furniture in room and by the pool… For perks they offered old rental bikes and $40 parking spot across the alley, room price was $475/nt. in April!! Also there were a wedding reception in the inner yard with noise all night long – no apologies or warning to guests. I pre-purchsed F&B credit online, front desk did not know what that is, did not found. Total dump hotel in my view, and I’m not that picky.
Manager finally issued me a partial refund for 2 nights stay, but I’m really cautious about Kimpton brand anymore – wanted to write to their headquarters so they can send inspection there, but did not found who to contact.
Totally disagree on author’s point that IHG is has bad loyalty program – on par I think it’s one of the best remaining for the average traveler, who mixes standard room stays with occasional luxury stays. I.e. stayed at the Kona, Big Island property pictures above, and it’s very decent hotel, although not on the beach, still good location and price suited for certain travelers.
Also IHG has 4th night free – no other chain offers that! Along with 10% rebate on point reservations.
My point – don’t disregard something because someone else said so, unless you have your own experience.
Why is it good that Kimpton offers a similar experience to W but at a lower price?
A consumer may think so.. a hotel owner may get more value from branding as W as there would be more revenue (and supposedly more profit) with a similar development cost
Truly “premium” business travelers dont stay bound to a loyalty program when looking for vacations. They go where they want and stay in the best place they can find. Or they rent a house. That’s truly premium. Nothing else matters, and all this discourse is for nothing. That’s all I’ll say.
Hi Kyle thanks for writing this “opinion” piece.I completely agree with you… wrong umbrella for IHG…I haven’t stayed in a Kimpton for along time now.It was the first “boutique” hotel and I stayed at there very first hotels in 1981 in San Francisco. Yes i am that old…The Triton with quite possibly the tiniest room ever besides Paris.I even spent my honeymoon when the Hotel Monaco opened.I did join their loyalty program when they offered one.It was ok,not as good as Starwood. Since I am probably older then all of you in these replies, the best hotels in the 70’s were the Plaza (Westin) and the Essex House ( Marriott) Spg or Starwood had an amazing loyalty program but alas everything changed ( not in a good way) IMO,when Marriot purchased everything under SPG (Westin,W, Ritz)So now the loyalty programs are just silly under Marriott Bonvoy and Hyatt was always unattainable with hundreds of thousands of points…Its no wonder that 7 of the 9 Kimpton hotels in S.F. left the brand when IHG purchased it in 2015.They knew it would be cheapened.So @Jason,I don’t agree that its all this “discourse is for nothing”.Its just a discussion of an opinion piece that I happen to agree with. So thanks Kyle!
IHG needs to change its name. Intercontinental’s used to be a well regarded brand that had great locations and upscale rooms. Nearly every property is 20 passé in room design and looks out of place for a hotel chain with the legacy like Intercontinental. IHG is better off selling off its assets and closing shop.
Would absolutely love it if Kimpton became a Hyatt brand. Have only stayed in two Kimptons (years ago), one in D.C. and the other in Alexandria VA. Really liked them both, but now as a Hyatt Globalist, it would make little sense to book/stay at Kimptons and miss out on Globalist benefits like free breakfast and free parking on award stays.
But if Kimpton properties were part of Hyatt, I’d book them in a heartbeat. Won’t hold my breath for it, however.
IHG rocks with InterContentental + Kimpton, as well as the ability to stay “cheap” when necessary. Moving up it’s lux line incrementally, all makes sense. Add to that the large credit card SUBs and regular 100% buy points bonuses, along with the ability to buy into Ambasador status. Bottom line, IHG rocks for the casual traveler (I’m no longer a business traveler, so I won’t post on that). Returned from recent UK trip, IC and Kimpton were our primary city stays, the upgrades were super, service stellar, and welcome gifts abundant.
I don’t think that Kimpton is in the wrong place. I think IHG just continuously spirals downward. IHG and its rewards program are just pitifully tightwad and really don’t offer comparable benefits to other programs. Until the management of IHG come to their senses about loyalty, that frequent guests are the basis of any lodging business, things will continue as they are. Another issue of IHG is that the company does not make properties conform to brand standards. Which is probably why old Kimpton followers are not happy because the company as a whole is very sloppy with maintaining brand standards.
I am at the point of writing IHG Rewards off, as I am tired of IHG’s poor behavior and customer service. At this point Kimpton properties for me, are not worth seeking out, as I have given up on the whole chain. I have had some really nice stays at IHG properties, but with Covid making international travel very challenging, just staying at Holiday Inns isn’t a motivator.