InterContinental Hotels Is Buying a 51 Percent Stake in Regent Hotels for $39 Million
Skift Take
Well, that didn't take very long. Will this luxury brand with a past be a good fit for IHG? Or is it too little, too late, to give Regent the comeback it deserves?
It looks like we finally have our answer as to which "asset light, small luxury brand company or companies with a strong customer proposition, [and] strong owner proposition" InterContinental Hotels Group (IHG) is buying.
The company announced Wednesday it has entered into a joint-venture agreement to purchase a 51 percent stake in Regent Hotels for $39 million in cash, with the option to buy up the remaining 49 percent "in a phased manner from 2026." The deal is expected to close during the second quarter of 2018, and Regent Hotels' existing leadership is expected to stay on.
Within its portfolio of 12 brands, which has now grown to 13, IHG intends to place Regent above its eponymous InterContinental Hotels brand, with the intent to grow Regent's global footprint from just six hotels to 40.
The $60 billion luxury hospitality market represents a huge opportunity for growth for the company, IHG CEO Keith Barr has previously noted. And the fact that Regent is headquartered in Asia, with a majority of its properties in the region, is another compelling reason for IHG's interest since Asia is a coveted key growth market for major hospitality brands, IHG included.
During IHG's full-year results investors call in February, Barr said, "A more comprehensive luxury offer will have numerous halo benefits, including helping us strength our loyalty offer and attracting more B2B customers."
In a statement issued today, B
