InterContinental Hotels Group (IHG) has formally completed its acquisition of a controlling interest in Regent Hotels & Resorts for $39 million in cash.
The deal, which was first announced in March, will bring the Regent brand into Denham, England-based IHG’s brand portfolio at the top end of the luxury segment. IHG intends to grow the brand from six hotels to more than 40 properties in key global gateway cities and resort locations.
“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,” Keith Barr, ceo of IHG, said when the deal was announced. “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.”
The cash deal is payable in three tranches of $13 million, with the first amount paid at acquisition completion. The second tranche comes due in 2021 and the third in 2024. Then, IHG will have the right to acquire the remaining 49 percent Regent in a phased manner from 2026.