InterContinental Hotels Group (IHG) has set out to acquire a 51% stake in Regent Hotels & Resorts, with a goal of bringing the brand to the top of the luxury segment and accelerating its growth.
The acquisition of Regent Hotels & Resorts is in line with IHG’s focus on expanding its footprint in the fast-growing USD 60 billion luxury segment. The 51% stake has been acquired for USD 39 million in cash, payable in three tranches of USD 13m each. The first payment was confirmed early this month, with the second amount due in 2021, and the third in 2024. IHG will have the right to acquire the remaining 49% in a phased manner from 2026.
“We see a real opportunity to unlock Regent’s enormous potential”
Keith Barr, CEO at IHG, commented: “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.”
IHG’s plan is to bring Regent into its brand portfolio and accelerate its growth globally. The intention is to grow the brand from six hotels today to over 40 hotels in key cities and resort locations over the long term.
Barr added: “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 allowing us to bring in new brands such as Regent to enhance our brand portfolio.”
The acquisition further cements Regent’s status as one of the biggest luxury hotel companies. It has grown from an Asian hotel company into a global brand, which is soon to be part of IHG’s well-known portfolio. Regent currently has four hotels in Asia and two in Europe, with several upcoming properties in Vietnam, Indonesia, and the US.