The 51% interest has been acquired for $39m (£29.5m) in cash, payable in three tranches of $13 (£9.8m). The first payment was paid on completion, with the second amount due in 2021 and the third in 2024. IHG will have the right to acquire the remaining 49% interest in a phased manner from 2026.
The group plans to bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally, growing the brand from six hotels today to over 40 in key global gateway city and resort locations over the long term.
The acquisition of Regent is part of IHG’s focus on expanding its footprint in the fast-growing $60bn (£45.5bn) luxury segment.
When the deal was announced back in March Keith Barr, CEO of IHG, said: “We see a real opportunity to unlock Regent’s enormous potential and accelerate its growth globally.”
He added: “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.”