InterContinental Hotels Group (IHG) is set to buy a 51% stake in Regent Hotels and Resorts for $39 million. The deal, which is expected to close during the second quarter, will bring Regent into the portfolio of Denham, England-based IHG, which plans to eventually grow the luxury brand from six hotels now to more than 40.
The agreement, a joint venture with Formosa Intl. Hospitality, gives IHG the right to acquire the remaining 49% of Taipei, Taiwan-based Regent in phases after 2026.
“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,” says Keith Barr, ceo of IHG. “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.”
As part of the deal, the InterContinental Hong Kong will undergo an extensive refurbishment in 2020, followed by the property reverting to a Regent Hotel in early 2021. The hotel originally opened in 1980 under the Regent flag.
Steven Pan, executive chairman of Taipei-based Formosa Intl. Hotels Corp., notes that Regent “…has an unrivaled heritage at the very top end of the luxury segment, and the flagship Regent Hong Kong was consistently voted the world’s best hotel in the 1980s and 1990s. Returning the property to its original roots as a Regent hotel is symbolic of our ambition to return the brand to its former glory and will go down in history as one of the greatest brand comebacks in the hotel industry.”