IHG Loses Seven San Francisco Kimpton Properties
InterContinental Hotels Group confirmed in its Q1 earnings call today that seven Kimpton hotels in San Francisco were removed from the system this month "due to a specific issue." According to HotelChatter.com, that issue is a union dispute, owing to the fact that all IHG hotels in San Francisco must be unionized. The lodging giant completed its acquisition of Kimpton in the first quarter of this year; those seven properties accounted for more than 10 percent of the Kimpton portfolio and, according to IHG, represented an annual fee revenue of $6 million.
That said, IHG expects this year to be the best ever for Kimpton, in terms of openings and signings, according to its earnings release. "We have secured five new signings already," said chief executive Richard Solomons, "and are in discussions to sign the first hotels for the brand outside the U.S., where demand from existing IHG owners is exceptionally strong."
The former Hotel Monaco is now the 201-room Hotel Marker, managed by Destination Hotels; the former Hotel Palomar has become the 202-room Hotel Zelos, managed by Benchmark Hospitality; the 252-room Argonaut and the 221-room Tuscan Fisherman's Wharf, now a Best Western Plus, are both now managed by Noble House Hotels and Resorts, which will retain all employees. The 140-room Hotel Triton and 131-room Harbor Court Hotel are now affiliated with OLS Hotels & Resorts. The 164-room Prescott Hotel is now managed by the Viceroy Hotel Group; all employees are being retained and the hotel will close for renovations later this year.
The remaining Kimpton properties are the 131-room Kimpton Buchanan and the 416-room Sir Francis Drake Hotel. According to HotelChatter.com, those hotels were the only Kimpton properties that were already unionized.