InterContinental Hotels Group buys 51% stake in Regent Hotels and Resorts for $39mn
InterContinental Hotels Group (IHG) has acquired a 51% stake in Regent Hotels and resorts for US$39mn, in a move that will accelerate its expansion into the luxury hospitality market.
The hotel giant, behind brands such as InterContinental Hotels & Resorts, Holiday Inn and Crowne Plaza Hotels & Resorts, also has the option to acquire the remaining 49% interest - valued at US$100mn - in a phased manner from 2026.
The acquisition comes as the British multinational has zeroed its focus on increasing its footprint in the fast-growing US$60bn luxury segment.
When revealing the company’s annual results in February, IHG’s chief executive Keith Barr said that the group intended to acquire a small luxury brand or brands, as well as launch a “new upscale conversion brand.”
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Speaking of the latest acquisition, Keith Barr, chief executive of IHG, said: “As one of the pioneers in defining luxury hotels both in Asia and around the world, Regent is an excellent addition to IHG’s portfolio of brands. We see a real opportunity to unlock Regent’s enormous potential and accelerate its growth globally.
He added: “In addition, by creating a dedicated luxury division, we will be bringing together some of the most experienced and respected people in the industry who will help drive our luxury offer, ensuring that our existing luxury brands continue to evolve and allowing us to bring in new brands such as Regent to enhance our brand portfolio.”
The hotel group said that the majority stake will be paid for via three $13mn payments, ending in 2024. It expects the transaction to close during the second quarter of 2018.
In Hong Kong, InterContinental Hong Kong will be transformed into a Regent hotel in early 2021, with refurbishment set to commence in early 2020.