InterContinental Hotels Group (IHG) has acquired a 51% stake in Regent Hotels and Resorts, owned by Taiwan-based Formosa International Hotels Corporation (FIH), for $39 million in cash. IHG will have the right to acquire the remaining 49% interest in a phased manner from 2026.
Under this agreement, IHG will take a controlling stake in Regent. All current Regent properties will join IHG's global online reservation system and loyalty programme.
Also, IHG will have the rights to develop and manage all existing and new Regent hotels outside of Taiwan whilst FIH shall retain exclusive rights to develop and manage future developments under the Regent brand in Taiwan, including the management of the Regent Taipei Hotel.
Describing the partnership as a "win-win solution", Steven Pan, executive chairman of FIH said, "The alliance will enable us to streamline our growth of the Regent brand into a much more profitable business, while we can focus on the growth and consolidation of our Taiwan domestic hotel and hospitality businesses, including the Regent Taipei and the Regent brand expansion in Taiwan."
IHG will bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally. According to IHG, their intention is to increase the brand from six hotels today to over 40 in key global gateway city and resort locations over the long term.
"IHG is already one of the world leaders in luxury with our InterContinental Hotels and Resorts brand, but we see significant potential to further develop our global footprint in the fast-growing luxury segment. 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," said Keith Barr, CEO of IHG.
As part of the alliance, InterContinental Hong Kong, which originally opened as a Regent property in 1980, will become a Regent Hotel in early 2021 after extensive refurbishment.