InterContinental Hotels Group has acquired a majority stake in luxury hotel operator Regent Hotels and Resorts, which plugs a gap in its portfolio for a true luxury brand.
IHG is paying parent Formosa International Hotels US$39 million for a 51% stake with the right to snap up the remaining 49% in stages over the next few years.
IHG gets just six hotels in the Regent portfolio but plans to expand that to at least 40 comprising 10,000 rooms in the coming years.
In fact IHG has already announced the first addition.
IHG’s InterContinental Hong Kong will rebrand to Regent by early 2021 after a refurbishment.
InterContinental Hong Kong was previously in the Regent brand.
"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," said IHG CEO Keith Barr.
"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."
Steven Pan, executive chairman of Formosa International Hotels said: "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."
Regent’s properties include Singapore, Taipei, Berlin, Chongqing and Beijing.
