KIMPTON HOUSES, LTD.
(Reuters: BOB BANGLINGER) The Portland hotel company is laying off at least half its employees and will make a $50 billion investment to buy out CEO Kimpton, the latest example of a tech company struggling to keep pace with rising costs.
The company said on Monday it would make the $100 million deal to buy Kimpton’s businesses after the board voted to approve the transaction on Thursday.CEO Kimpton is expected to be paid $50m, with the rest coming from the company’s deferred compensation, according to a company statement.
He will also get an additional $10m for a stock option, it said.
In October, the company said it planned to raise $1 billion in new capital, though the company had yet to announce any plans to raise further money.KIMPTTON HOUSESTORE, INC.
(NYSE: KIMT) Kimpton founded the company in 2001, and has since grown to become one of the world’s largest hotel chains.
Kimpton has said that the cost of living is too high for some companies, and he has warned that it’s time for the United States to do more to lower the cost in the cities it controls.
The company said in January that it plans to expand its hotel business and expects to add more than 100,000 rooms this year.