IHG Buys 51 Percent of Regent Hotels

InterContinental Hotels Group has announced it has agreed to acquire a 51 percent stake in Regent Hotels & Resorts for $39 million in cash.

IHG will have the right to acquire the remaining 49 percent interest in a phased manner from 2026.

The hotel giant will bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally.

InterContinental Hotels Group’s intention is to grow the brand from six hotels today to over 40 hotels in key global gateway city and resort locations over the long term.

Synonymous with timeless modernity, understated luxury and intuitive service, the Regent brand has set the benchmark for luxury hotels globally since it was founded in 1970.

It has a world-renowned heritage, built around the elegant, timeless design of its hotels and rooted in its focus on delivering a truly unique and superior luxury experience for guests.

The acquisition of Regent is part of one of InterContinental Hotels Group’s new strategic initiatives focused on continuing to expand its footprint in the fast-growing $60 billion luxury segment.

This initiative is supported by the creation of a new dedicated division to further enhance our capabilities in this area and will be funded by InterContinental Hotels Group’s efficiency program.

InterContinental Hotels Group also confirmed that, following an extensive refurbishment due to commence in early 2020, InterContinental Hong Kong will become a Regent Hotel in early 2021.

The hotel originally opened its doors in 1980 as one of the most iconic hotels to ever carry the Regent brand.

Keith Barr, chief executive Officer of InterContinental Hotels Group, commented: “IHG is already one of the world leaders in luxury with our InterContinental Hotels & Resorts brand, but we see significant potential to further develop our global footprint in the fast-growing luxury segment.

The 51 percent stake will be acquired for $39 million in cash, paid in three tranches of $13 million, the first upon the date of completion, the second in 2021 and the third in 2024.

These amounts will be funded within IHG’s existing capital expenditure guidance of up to $350 million gross, and $150 million net, per annum into the medium term.