When Mike Depatie joined Kimpton Hotel and Restaurant Group as head of real estate three-and-a-half years ago, he aimed to beef up the financing. Did he ever. Two years ago, Kimpton raised $157 million in equity to buy hotels. Will they ever.

“Over the next three years, we should grow by at least 50 percent and by the next five years, we should double the size of the company,” says Depatie, the new chief executive officer of the original boutique hotel brand. At present, there are 39 hotels and 40 restaurants in the Kimpton portfolio, including 12 properties in San Francisco, where Bill Kimpton founded his trend-setting flag in 1981.

Kimpton has a great opportunity because boutique hotels represent about one percent of the total hotel supply, says Depatie. Kimpton's target: major urban markets, their suburbs, and resort destinations. “I don't see why we wouldn't have 12 hotels in Manhattan and 12 hotels in L.A.,” he says.

Today's situation evokes the early '80s when he worked for lodging pioneer Jack DeBoer on expanding then-baby brand Residence Inn. “We were thinking about how big we thought demand was for lodging where people stayed longer than seven nights,” he says. “We figured it was one or two percent, but it was 15 percent. I don't think demand for boutique is 15 percent of supply, but I think it's a pretty big number.”

Travelers are tired of “one-size-fits-all” franchise companies that cookie-cut product, Depatie says. What counts is “consistency of experience,” as in Starbucks. Starbucks regulars expect the same drink at every outlet but they also appreciate the touches that differentiate a Seattle Starbucks from one in Milwaukee.

“We're in the business of delivering all the things you want in a hotel today,” Depatie says. “Wouldn't it be nice to be pleasantly surprised by an interesting design or a great restaurant and be engaged by the people at the front desk? We manage all our hotels and we really work hard to support that kind of culture.”

Reprints and Licensing
© 2014 Penton Media Inc.

Acceptable Use Policy
blog comments powered by Disqus

Most Recent

More Recent Articles

Career Center

Quick Job Search
Enter Keyword(s):
Enter a City:

Select a State:

Select a Category:

Franchise Fact File Top Brands
Brand Company Basics Top Management Companies
Owners & Operators Industry Consultants
Industry Associations Industry Events
Design Firms Purchasing Companies
Top Ownership Groups  


Click here to view all of the Lodging Hospitality Photo Galleries

Accor Best Western
Carlson Rezidor Choice
Hilton Hyatt
IHG La Quinta
Marriott Starwood
Vantage Wyndham

Free Product Information
News and Trends for the Hotel, Motel, and Hospitality Markets.

Lodging Hospitality eReport
Lodging Hospitality electronic newsletters are FREE to requested subscribers.

Lodging Hospitality Resource Center
The Lodging Hospitality Resource Center is the ultimate resource to find products and services to build, equip, and renovate hotels, motels and resorts.

Subscribe / Renew
Visit our subscription center to subscribe or renew your subscription to Lodging Hospitality.

Visit our webinars page to view all our upcoming and on demand webinars.

Visit our White Papers page to view all our current White Papers.