InterContinental Hotels Group (IHG) has acquired a 51% stake in Regent Hotels and Resorts for $39m (£28m).
IHG will bring Regent into its portfolio and aims to grow the brand from its six currents properties to over 40 hotels in key global gateway city and resort locations.
The acquisition of Regent is part of IHG’s new strategic initiative focused on expanding its footprint in the $60bn (£43bn) luxury hotel sector.
Keith Barr, CEO of IHG, said: “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.”
In February 2018 Intercontinental Hotels Group (IHG) said it would launch a new upscale conversion brand as well as acquire luxury brands later in the year.
At the time Barr said: “In recent years, we have built a powerful and effective enterprise which has supported our transition to being fully asset light, and driven strong performance across our 5,300 hotels. Today we are announcing a series of new initiatives that build on our well-established strategy and will drive an acceleration in our growth rate.
“We moved at pace to develop and roll-out the concept for our new mainstream brand, Avid Hotels. Since September we have signed 75 hotels, with the first due to open later this year and a global launch being planned.”