Home' Hotel Management : HM April 2018 Contents IHG buys controlling
stake in Regent Hotels
InterContinental Hotels Group (IHG) has agreed to acquire a 51% stake in
Regent Hotels and Resorts for USD$39 million in cash.
IHG says the move will bring Regent into its brand portfolio at the top end
of the luxury segment and will accelerate its growth globally.
The company plans to grow the brand from six hotels today to “over 40
hotels in key global gateway city and resort locations over the long term”.
IHG is also expected to make a further play in the luxury segment, with
the company saying 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 USD$60 billion luxury segment”.
“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,” said IHG CEO, Keith Barr.
“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,” he said.
Barr said a new luxury management division would be created within IHG
as part of the Regent acquisition and to further grow in the segment.
“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,” he said.
IHG will have the right to acquire the remaining 49% interest in Regent in a phased
manner from 2026, by which time several properties will have joined the portfolio,
including InterContinental Hong Kong, which IHG has revealed will become a
Regent Hotel in early 2021 following the property’s extensive refurbishment.
InterContinental Hong Kong originally opened its doors in 1980 as one of
the most iconic hotels to ever carry the Regent brand.
CORDIS AUCKLAND SET FOR MAJOR EXPANSION
Following the multi-million dollar
refurbishment of Cordis Auckland, Hong
Kong-based Langham Hospitality Group
has announced new expansion plans that will
make the upper-upscale hotel the largest in
New Zealand in terms of room count.
Set to be completed by late 2020
with a total of 650 rooms and suites, the
recently rebranded hotel will also add a new
400-square-metre event space that will offer
natural light and multiple configurations.
The new tower adjacent and connected
to the existing hotel will house an additional
250 premium rooms and Cordis signature
suites. The size of the new rooms will start
from 32 square metres and the brand-new
Club Lounge will feature panoramic views of the
harbour and Auckland Tower.
The hotel’s Eight restaurant will feature an
additional 60 seats and improved interactive
food display areas. The hotel will also offer a
new destination bar with courtyard and outdoor
seating to further elevate Cordis, Auckland’s
“The successful repositioning of Cordis,
Auckland combined with the economic growth
and positive tourism outlook in New Zealand
makes us confident that this is the right time for the
owner of the hotel to commit its financial resources
for the expansion of the hotel,” said Simon
Manning, Chief Sales and Marketing Officer of
Langham Hospitality Group. “ We believe that the
core essences of this new hotel brand,
which are individual in style and design,
reflective of its location and culture, and a
provider of heartfelt service to our guests,
will resonate well with corporate and
leisure travellers to Auckland.”
Cordis Auckland, Managing Director,
Franz Mascarenhas, added: “The
expansion will meet the increasing
demand for business and leisure travellers
visiting Auckland as a result of the
successful tourism campaigns by Tourism
New Zealand. We also see more families
and couples doing staycations over long
weekends and special occasions. Our
enhanced dining experiences, wellness
programmes at our Chuan Spa and the Cordis
Kids programme will ensure every stay will be an
The hotel’s new tower is scheduled to be
opened in the fourth quarter of 2020, in time for
The America’s Cup and Asia Pacific Economic
Forum (APEC), two major events slated to be
held in Auckland the following year.
Cordis Auckland is adding 250 rooms
IHG’s CEO Keith Barr says the company wants
to further grow its stake in the luxury segment
10 HM The Business of Accommodation
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