ATLANTA — InterContinental Hotels Group today announced that it has agreed to acquire a 51 per cent stake in Regent Hotels and Resorts for $39 million in cash. The agreement is a joint venture with Taiwan-based Formosa International Hotels Corporation to acquire the Regent Hotels and Resorts brand and associated management contracts. IHG will have the right to acquire the remaining 49 per cent interest in a phased manner from 2026.
IHG will bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally. There are currently six hotels with 2,000 rooms in the Regent system, and three hotels with 900 rooms in the Regent pipeline. IHG expects to grow the brand to more than 40 hotels with 10,000 rooms in key global gateway city and resort locations over the long term.
Known for its timeless modernity, understated luxury and intuitive service, the Regent brand was founded in 1970 with hotels in Europe and Asia.
IHG focuses on the luxury segment
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 part of one of IHG’s new strategic initiatives focused on continuing to expand its footprint in the fast-growing $60 billion luxury segment. This initiative is supported by the creation of a new dedicated division to further enhance its capabilities in this area.
IHG also announced today that following an extensive refurbishment starting in early 2020, InterContinental Hong Kong will become a Regent Hotel in early 2021. The hotel originally opened its doors in 1980 as a Regent, one of the most iconic hotels to ever carry the Regent brand.
Keith Barr, Chief Executive Officer of IHG, said, “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.
“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.
“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 and allowing us to bring in new brands such as Regent to enhance our brand portfolio.”