InterContinental Hotels Group has agreed to acquire a majority stake of 51 percent in Regent Hotels and Resorts for $39 million in cash; and it will have the right to acquire the remaining 49 percent interest in the luxury lodging company in a phased manner from the year 2026.
InterContinental Hotels Group Acquires 51 Percent Stake in Regent Hotels and Resorts
Although Regent Hotels and Resorts — which is based in Hong Kong and will become the thirteenth brand of the worldwide portfolio of InterContinental Hotels Group — currently only has six hotel and resort properties in Beijing, Berlin, Chongqing, Porto Montenegro, Singapore and Taipei, it is a key part of the strategy for InterContinental Hotels Group to increase its presence in the top end of the luxury segment of the global lodging market, which is estimated to be valued at $60 billion.
Three additional hotel properties are already slated to open in Jakarta in 2018 and Harbin and Phu Quoc in 2019; and they will be part of the anticipated accelerated growth target of greater than 40 hotel and resort properties in key global gateway city and resort locations over the long term. Additionally — after it undergoes an extensive refurbishment which is expected to start in the year 2020 — the InterContinental Hong Kong will become a Regent Hotel in early 2021.
“Synonymous with timeless modernity, understated luxury and intuitive service, the Regent brand has set the benchmark for luxury hotels globally since it was founded in 1970”, according to this official press release. “It has a world-renowned heritage, built around the elegant, timeless design of its hotels and rooted in its focus on delivering a truly unique and superior luxury experience for guests.”
Although it claims to already a global leader in the luxury segment with InterContinental Hotels & Resorts — which is currently the largest luxury brand in the world — the purchase of the majority stake in Regent Hotels and Resorts is supported by the creation of a new dedicated division to further enhance its capabilities in this area.
Regent Hotels and Resorts released a similar press release pertaining to this news.
Summary
Questions still remain about the outcome of certain aspects of this deal. For example, will the Regent Hotels and Resorts brand participate in the IHG Rewards Club frequent guest loyalty program — and if so, exactly how will that be implemented? Will this brand recognize members who have Royal Ambassador level status?
Regent Hotels and Resorts was founded in 1970 to elevate “the luxury hotel concept with an innovative mix of premium residential and retail components at select hotels”; and this may be an opportunity for the brand to become global with the backing of InterContinental Hotels Group — which hopefully will not dilute the brand as it experiences accelerated growth.
Source: Regent Taipei.
