StockMarketWire.com - InterContinental Hotels said Wednesday that it has agreed to acquire in a joint venture with Formosa International Hotels Corporation a 51% stake in Regent Hotels and Resorts for $39 million in cash as part of its plan to further expand its luxury footprint.

InterContinental will have the right to acquire the remaining 49% interest in a phased manner from 2026. The acquisition of Regent is part of one of IHG's new strategic initiatives focused on continuing to expand its footprint in the fast-growing $60 billion luxury segment.

IHG also announced that following an extensive refurbishment due to commence in early 2020, InterContinental Hong Kong will become a Regent Hotel in early 2021. The hotel originally opened its doors in 1980 as one of the most iconic hotels to ever carry the Regent brand.

Keith Barr, Chief Executive Officer of IHG,said: '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. 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.'

Goodwin Gaw, Chairman of Gaw Capital Partnership, said: 'The InterContinental Hong Kong is internationally acclaimed as one of the world's best hotels and is prized for its unrivalled views of the Victoria Harbour and Hong Kong Island. Originally built as The Regent Hong Kong in 1980, the hotel was rebranded to InterContinental Hong Kong in June 2001. The hotel is primed to undergo a spectacular transformation that will position it as one of the top hotels not only in Asia, but also as one of the world's most iconic hotels. We are absolutely delighted that after the refurbishment, we will be opening our doors once again as The Regent Hong Kong, a flagship property for the Regent brand, returning the property back to its original roots.'










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