Acting on its strategy to grow its presence in the luxury hotel segment, U.K.-based InterContinental Hotels Group PLC signed an agreement to acquire a 51% interest in Regent Hotels and Resorts for $39 million in cash.
InterContinental has the right to purchase the remaining 49% stake in the luxury hospitality company from 2026, according to a release. Following the deal, the Regent brand will expand over the long term to 40 hotels and resorts across key cities from its current six hotels.
The company also noted that the InterContinental Hong Kong hotel will be rebranded as a Regent hotel in early 2021, following an extensive renovation set to begin in early 2020.
According to a report from The (U.K.) Times, InterContinental is also in the race to buy Principal Hotel Co.'s 12 city-center hotels in the U.K. in a joint venture with an undisclosed investor. Starwood Capital Group is selling the entire hotel company in a £1.2 billion auction through UBS.
Earlier in March, Reuters reported, citing InterContinental CEO Keith Barr, that the London- and New York-listed hotel group was close to sealing a deal for one or two small luxury hotel brands, which could produce more income than its Holiday Inn Express brand.
