InterContinental Hotels Group (IHG) announced today that it has completed the purchase 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.
The purchase of the mentioned 49% would be carried out through a series of put and call options, is capped, and is based on a trailing twelve-month multiple of joint venture income, which based on IHG current projections would result in a payment of less than $100 million.
IHG will bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally. IHG’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.
First announcement in the new openings field is InterContinental Hong Kong will become a Regent Hotel in early 2021 following an extensive refurbishment due to commence in early 2020. The hongkongese propperty originally opened its doors in 1980 as one of the most iconic hotels to ever carry the Regent brand. In addition, there are currently 3 hotels in the Regent pipeline.
IHG is already a global leader in the luxury segment with the world’s largest luxury brand, InterContinental® Hotels & Resorts. The acquisition of Regent is in line with IHG’s focus on expanding its footprint in the fast-growing $60 billion luxury segment.
Image over the headline.- Regent Porto Montenegro. © IHG.