InterContinental Hotels Group (IHG) is acquiring a 51 per cent stake in Regent Hotels and Resorts for US$39 million as part of its expansion efforts. It has the right to buy up the remaining 49 per cent interest in phases from 2026.
IHG intends to bring Regent into its luxury portfolio and grow the brand from six hotels today to over 40 hotels in key global gateway city and resort locations over the long term.
The US$39 million in cash will be paid in three tranches of US$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 US$350 million gross, and US$150 million net, per annum into the medium term.
IHG also announced that following an extensive refurbishment due to commence in early 2020, InterContinental Hong Kong, originally a Regent, will return to its original brand in early 2021.
Steven Pan, executive chairman of Formosa International Hotels, said the rebrand is “symbolic of our ambition to return the brand to its former glory” and touts it “one of the greatest brand comebacks in the hotel industry”.
“IHG shares our vision for the brand and has the ability to make our ambition a reality. IHG has a deep understanding of how to protect what makes the Regent brand so unique and special, whilst at the same time ensuring that the brand can grow and thrive on a global scale,” he added.
Keith Barr, IHG’s CEO, said: “We see a real opportunity to unlock Regent’s 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.”