Kimpton Hotels & Restaurants Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$67,536,551 - $94,715,966
Franchise Fee
$100,000
Total US Locations
54
Business Summary
Kimpton Hotels & Restaurants licenses and supports the operation of design-led, full-service guest lodging facilities. These hotels typically feature more than 150 rooms, meeting and event spaces, fitness centers, and various food and beverage options, often accompanied by locally loved restaurants and bars. Kimpton Hotels & Restaurants are designed to provide a genuine level of service and are strategically located in major markets, important secondary cities, and resort destinations, catering to high-end leisure travelers, corporate business, and group events.
Corporate History
IHG Franchising, LLC was established in Delaware in March 2004. While IHG Franchising, LLC began offering licenses for Kimpton Hotels & Restaurants in September 2018, its predecessors and affiliated companies have been operating and licensing hotel businesses since approximately 1953. The Kimpton brand itself was originally founded in 1981 by Kimpton Hotel & Restaurant Group, LLC, which was acquired by an affiliate of IHG Franchising, LLC in January 2015. The ultimate corporate parent for IHG Franchising, LLC is InterContinental Hotels Group PLC, based in the United Kingdom.
Financial Overview
Investment Range
$67,536,551 - $94,715,966
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$100,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$59,379,400
Equipment Costs (High)
$82,429,345
Working Capital
$2,600,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kimpton Hotels & Restaurants, through its franchisor entity IHG Franchising, LLC, operates as a wholly-owned subsidiary of Six Continents Hotels, Inc., which is part of the larger InterContinental Hotels Group PLC. The financial statements for IHG Franchising, LLC are presented as part of this larger group and are not necessarily indicative of a standalone entity; its credit risk is considered low due to the financial backing of its parent. Six Continents Hotels, Inc. also presents a strong financial position, reflecting its role in owning, leasing, managing, and franchising a diverse portfolio of hotel brands. Auditors have provided an unqualified opinion on the financial statements for both entities, indicating that they present fairly their financial positions.
Financing Details
Kimpton Hotels & Restaurants, through IHG Franchising, LLC, does not provide a formal program for direct or indirect financing to its franchisees. However, its affiliate, Six Continents Hotels, Inc. (SCH), or General Innkeeping Acceptance Corporation (GIAC) may, in some cases, offer loans or guarantees. Any such financing would be negotiated on a case-by-case basis, subject to the judgment and approval of IHGFL, SCH, or GIAC's executive committee and board of directors. Franchisees are ultimately responsible for securing their own financing for all development, opening, and operational expenses.
Performance Metrics
Total US Locations
54
Franchised Units
16
Corporate Units
0
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
19
Litigation Summary
Kimpton Hotels & Restaurants, through its affiliate Holiday Hospitality Franchising, LLC and its parent Six Continents Hotels, Inc., has been involved in extensive litigation, with many cases being active or concluded within the last three years. This includes several pending lawsuits where franchisees allege breach of contract, misrepresentation, and violations of franchise practice acts, with damages sought by both sides, including liquidated damages exceeding $2.1 million in one case. Kimpton Hotels & Restaurants is also involved in ongoing class action lawsuits, originally filed in 2021 by groups of franchisees across multiple states, alleging unlawful business practices, unreasonable product requirements, and improper kickbacks. While the majority of these class action claims were dismissed, some breach of contract and deceptive trade practices claims remained, with an appeal pending as of January 2025. Additionally, recent concluded litigation includes cases where the franchisor sued franchisees for unpaid fees, and several cases involving alleged wrongful termination of license agreements or data security breaches (such as the Sabre SynXis reservation system breach), with some resulting in settlements where payments were made to plaintiffs or to the franchisor. Notably, one arbitration case from 2020 resulted in a partial award of damages against an IHG affiliate in December 2022.
Bankruptcy History
Kimpton Hotels & Restaurants has no bankruptcy history to report for IHG Franchising, LLC or any of its management.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Kimpton Hotels & Restaurants does not offer renewal or term extensions for its franchise agreements. If IHG Franchising, LLC agrees to re-license a hotel, the franchisee may be required to sign a new contract with terms and conditions that are materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Kimpton Hotels & Restaurants provides comprehensive support to its franchisees both before and after a hotel opens. Before a hotel opens, IHG Franchising, LLC conducts site inspections and prepares a Property Improvement Plan for conversions. It reviews construction plans to ensure compliance with brand standards and performs a final inspection before authorizing a hotel to open. Franchisees and their teams are required to attend a pre-construction orientation and various training programs, including Kimpton Orientation & Onboarding, a RAMP UP program for reservation and revenue management systems, and specialized Property Management System training. Key department heads, such as the General Manager, Director of Sales, and Executive Chef, must complete specific certification programs. After opening, Kimpton Hotels & Restaurants maintains high quality and service standards across all hotels to strengthen the brand. It offers ongoing training programs, access to its global reservation system, and a marketing and reservation contribution fund used for brand marketing, sales, and guest services. Franchisees also receive updates on Brand System developments and have access to consultation and advice on operations, facilities, and marketing, as well as an online information portal called IHG Merlin.
Initial Training Hours
429
Training Location
Virtual, in Atlanta, GA, San Francisco, CA, other regional locations, and on-site at the franchisee's hotel.
Ongoing Support
After opening, Kimpton Hotels & Restaurants provides ongoing support to its franchisees in several key areas. This includes continuous efforts to maintain high standards of quality, cleanliness, and service across all hotels to promote the brand's reputation. Franchisees receive access to required and optional ongoing training programs and the central reservation system. IHG Franchising, LLC utilizes a "Marketing and Reservation Contribution" fund for broad marketing, advertising, sales, and guest service initiatives, as well as for research and development of new services. The franchisor also offers consultation and advice on operational, facility, and marketing matters, and communicates ongoing improvements and developments to the Brand System. Additionally, hotels benefit from annual on-site consulting and training visits by IHG Franchising, LLC employees, and have access to IHG Merlin, an internet-based information delivery service that provides Brand Standards, operational guidelines, sales and marketing tools, and training resources.
Franchise Requirements
Ideal Candidate Profile
Kimpton Hotels & Restaurants looks for franchisees who can hire and retain a qualified and experienced management company, as well as a General Manager for the hotel and a Director of Sales, each with at least three years of prior experience in a similar brand segment. Additionally, a General Manager-Food & Beverage needs at least three years of qualifying restaurant experience in a luxury hotel or upscale independent restaurant. For new owners or those new to the Kimpton Hotels & Restaurants brand, participation in Revenue Services and Commercial Services Programs is required for the first two years. Hotels with more than 200 rooms also require a dedicated, on-site revenue manager who is certified in IHG Revenue Management.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
The Kimpton Hotels & Restaurants brand generally does not grant licenses for exclusive areas or territories. The license is specifically for a single hotel location and does not extend to other sites. Franchisees will not receive an exclusive territory and may face competition from other licensed Kimpton Hotels, hotels owned or managed by IHGFL or its affiliates, or other distribution channels and competitive brands controlled by IHGFL or its affiliates. In certain special circumstances, if IHGFL deems it warranted, it may grant exclusive or protected areas where no other Kimpton Hotel will be licensed; however, even in these cases, the license remains site-specific for that one hotel.
Staffing Notes
Kimpton Hotels & Restaurants requires that franchisees employ suitable and qualified individuals in sufficient numbers to staff all hotel positions according to brand standards. Key management roles, such as the General Manager for the hotel, Director of Sales, and General Manager for Food & Beverage, must have a minimum of three years of relevant industry experience in similar brand segments or luxury settings. These managers are expected to work exclusively for the franchisee's hotel and must complete specific initial certification training programs. Other department heads and staff also have designated training requirements. IHG Franchising, LLC provides guidance on allocating annual training budgets for various levels of employees, including managers, supervisors, and frontline staff.