by Mia Taylor
Last updated: 3:24 PM ET, Wed March 14, 2018
InterContinental Hotels Group has agreed to acquire a 51 percent stake in Regent Hotels & Resorts.
The $39 million cash deal, announced this morning, also gives IHG to right to acquire the remaining 49 percent interest in Regent in a phased manner.
As part of the transaction, IHGwill bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally, IHG said in a statement.
There are currently six hotels in the Regent collection. IHG said it will increase that number to 40 hotels in key global gateway city and resort locations but did not provide a timeline for that growth.
"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," Keith Barr, Chief Executive Officer of 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 will acquire the 51 percent interest in Regent as part of a joint venture with Formosa International Hotels Corporation.
An award-winning brand that dates back nearly 50 years and is legendary for its elegance and luxury, Regent currently has properties in Berlin, Beijing, Singapore, Taipei, Montenegro and Chongqing.
IHG meanwhile, is already a significant player in the luxury segment operating the world's largest luxury brand InterContinental Hotels & Resorts.
Acquisition of Regent Hotels & Resorts is part of an IHG strategic initiative focused on continuing to expand its footprint in the luxury segment. This effort has included creating a new dedicated division designed to further enhance IHG's capabilities in the luxury space.
"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," Barr said.
Regent was founded in 1970 by legendary hotelier Robert Burns, who was focused on combining Asian hospitality with Western elegance. The brand's flagship hotel is The Regent Hong Kong, a property that consistently received awards during the 1980s and 1990s for being the world's best hotel, Steven Pan, executive chairman of Formosa International Hotels Corporation said.
IHG also announced today that following a significant remodel slated to start in 2020, Intercontinental Hong Kong will return to being a Regent Hotel. Originally built as The Regent Hong Kong in 1980, the hotel was rebranded to InterContinental Hong Kong in June 2001.
The refresh of the property, which is known for its unrivaled views of Victoria Harbour and Hong Kong Island, is expected to be complete in early 2021.
"The hotel is primed to undergo a spectacular transformation that will position it as one of the top hotels not only in Asia but also as one of the world's most iconic hotels," Goodwin Gaw, chairman of Gaw Capital Partnership, said in a statement. "We are absolutely delighted that after the refurbishment, we will be opening our doors once again as The Regent Hong Kong, a flagship property for the Regent brand, returning the property back to its original roots."
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