InterContinental Hotels Group (IHG) claims it will become the largest luxury hotel operator in the UK, following a deal with French company Foncière des Régions (FDR).
It follows the £858 million acquisition of the Principal hotel group by FDR from the US-based Starwood Capital Group.
The agreement will see IHG rebrand and operate 12 upmarket hotels and one property in the pipeline.
The hotels currently operate under the Principal Hotels and De Vere Hotels brands.
The hotel chain said: “This deal will establish IHG as the leading luxury hotel operator in the UK, taking it to more than 2,000 rooms in this valuable, fast growing segment.
“It will expand the presence for the InterContinental brand, and enable IHG to launch its leading luxury boutique brand, Kimpton Hotels & Restaurants in the UK, adding multiple hotels for the brand in prime locations in major city centres, including London, Manchester and Edinburgh.”
It said the deal will also establish a presence for IHG’s new upscale brand, which will be launched later this year.
Keith Barr, IHG chief executive, said: “We are focused on continuing to expand our leadership in luxury and upscale, which are both high-value segments with significant growth potential.
“Bringing Kimpton to such an important market as the UK is a key part of our plans, as is the introduction of our new upscale brand, which will provide an exciting, differentiated offering to both guests and owners.”
The hotels in the deal are:
The Principal London
The Principal Edinburgh Charlotte Square
The Principal Edinburgh George Street
The Principal Met Hotel (Leeds)
The Principal York
De Vere Oxford Thames
The Grand Birmingham (pipeline)
The Principal Manchester
The Principal Blythswood Square (Glasgow)
The Principal Grand Central (Glasgow)
The Principal St David’s (Cardiff)
The Principal Oxford Spires
De Vere Wotton House
Pictured: Hotel Principal York.