InterContinental Hotels Group (IHG) has completed its acquisition of a 51% stake in Regent Hotels & Resorts.
The 51% interest has been acquired for $39 million in cash, payable in three tranches of $13 million: $13 million was paid on completion, with the second amount due in 2021 and the third in 2024. IHG will have the right to acquire the remaining 49% interest in a phased manner from 2026.
IHG will bring Regent into its brand portfolio at the top end of the luxury segment
IHG will accelerate its growth globally, supported by IHG ’s powerful enterprise, according to the company. IHG ’s intention is to grow the brand from six hotels today to more than 40 hotels in key global gateway city and resort locations over the long term.
“IHG is already one of the world leaders in luxury with our InterContinental Hotels and Resorts brand, but we see significant potential to further develop our global footprint in the fast-growing luxury segment,” said Keith Barr, CEO of IHG, when the acquisition was first announced in March. “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
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.”
Source : hotelbusiness.com