I heap loads of criticism on IHG for their poor treatment of elites respective to their peers, but IHG’s purchase of Kimpton and their subsequent investment in the brand is one of the best decisions the brand has made.
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Kimpton Acquired by IHG
At the end of 2014, IHG acquired Kimpton Hotels to build, “the largest boutique hotel business.” At the time, the move was welcomed by IHG elites and loathed by Kimpton loyalists. The question at the time was how true to their values the brand could remain inside of such a huge hospitality machine. Their loyalty program, Karma, has remained in place running parallel to IHG Reward Club.
Kimpton is a Brand IHG Couldn’t Build
Kimpton built their lifestyle brand from the ground up. IHG tried to replicate a similar brand ethos, though in new locations and not in existing classic hotels with their Indigo line. Curio from Hilton and Unbound from Hyatt reflect that this is a market trend. The problem is that Kimpton and similar hotels (Ace comes to mind) has a particular strength in that they know their market and are not trying to play to the masses.
Kimpton had (has) secret words at checkin for added perks. They open up the minifridge and build bars and restaurants customers want to frequent even when they are not staying at the property. This isn’t just another hotel bar.
Continual Investment Improves Kimpton
IHG purchased 18 properties from Starwood Capital which should not be confused with Starwood Hotels & Resorts (purchased by Marriott). This small line of premium boutique (that doesn’t mean small) hotels was a great fit for the brand. Last week my family stayed at the Principal Manchester, soon to be Kimpton Manchester and it embodied what Kimpton Hotels are – quirky, classic, and premium.
Kimpton perhaps could have added to their 70+ hotels with the same acquisition but if so, it would have been an expansion so large that it is unlikely growth could have remained at such a fast clip.
While 18 hotels added to the brand is not an insignificant investment for a company the size of IHG, it is a fraction of what they are capable of offering to the brand. If those hotels perform well (the Principal Manchester was certainly impressive) it will give IHG reason to add to their portfolio further and that makes Kimpton stronger than they could have been as an independent chain.
Is It Enough to Make IHG Great?
No, IHG is too large and has too few properties that touch the level of Kimpton (even with the inclusion of some premium Intercontinental Hotels) of their 5,000+ properties. However, it does give IHG aspirational properties that were few and far between prior to the acquisition. If you must stay in Holiday Inns and Holiday Inn Express hotels across America at least there is something to look forward to at the end.
What do you think? Does Kimpton make IHG a better brand? Has Kimpton benefited from the merger or was it worse for the brand?
Kimpton was (and remains) an attractive premium brand for hospitality. Both the hotels and the outstanding restaurants hold a cache few other brands can even approach. I came to the IHG Rewards program through Kimpton Karma and I agree with your assessment that Kimpton adds value (exponentially, I would argue!) to IHG. I was intrigued by your experience at the Principal Manchester. And I am eager to see the number of Kimpton properties expand and the concept grow both internationally and in the US and Canada. If IHG management can just provide the financing and manage the overall IHG Rewards loyalty relationship and if they can keep their hands off and their mouths shut about operational aspects of Kimpton, the brand may survive and perhaps thrive. And, IHG will profit from their investments in Kimpton. But there is a very real danger of IHG getting the idea they know better how to grow this brand – they absolutely do not! Indigo (a brand that should be put to a speedy and merciful death) is proof positive that IHG does not understand the boutique hotel category.
Kimpton also needs to encourage (strongly!) IHG Rewards to bring their IHG customer service function back from the Philippines. IHG Rewards daily risks the disenchantment of premium customers (myself included) who have less than favorable customer service engagements. Ultimately, Intercontinental, Kimpton, and even Holiday Inn and Crown Plaza (another brand that needs investment or should be allowed to die) will pay the price for IHG Rewards lack of customer service focus and incredibly poor (from what I can discern) agent training efforts. IHG needs to leave a good thing alone!
Kimpton should run as fast and as far as it can from IHG while it still has a brand name with value. IHG has sent all its customer service and reservations functions to the Philippines, the Dominican Republic, and Jamaica. For all their guests, but especially for elite guests, this is not good news. Customer service levels have already plummeted in the last several months and are only likely to get worse as IHG seems determined to compete for the bottom of the barrel and run its business into the ground. Loyal travellers (and Kimpton) deserve better – but they’re not likely to get it. The direction IHG has chosen is about as diametrically opposed to Kimpton’s value ethos as it’s possible to get.
IHG is great as is and its points and status are easiest to get (hacking) now that Marriott doubled its fast track requirements to elite status post merger.
I don’t get what the brouhaha is all about with the merger of the Kimpton Hotels into the IHG program. Not what we are used to for hotel stays. Cash rates $300+ and up with mediocre accommodation and hardly any benefits. I am truly trying to understand why the huge excitement about the Kimpton. Despite of the welcome gifts and upgrades, I remain blasé by this chain.
Also, this whole Secret Social Password thing is just a gimmick for a failed chain and a merger that does not make any sense! Why not just offer a written benefits for IHG elites, participate in the Ambassador program, or offer tangible benefits to both such as waived enormous parking fees.