Intercontinental Hotels Group PLC (LON:IHG) has acquired luxury hotel and spa operator Six Senses in a US$300mln cash deal with private equity firm Pegasus Capital Advisers.
The purchase, which included all of Six Senses' brands and operating companies but no real estate assets, would extend FTSE 100 IHG’s reach into the segment and expand its portfolio of luxury hotels to 400 (108,000 rooms) globally.
READ: Intercontinental Hotels 'a disciplined, well managed' company, says Berenberg
IHG added that it saw potential to grow the Six Sense estate to over 60 properties over the next 10 years, with locations already under construction in West Chelsea and Manhattan, New York City.
Six Senses currently manages 16 hotels and resorts with 18 management contracts in the pipeline and another 50 deals under active discussion, IHG said.
The chain also operates 37 spas under the Six Sense and LivNordic brands, which IHG said were “core to the brand’s luxury and wellness positioning”.
Keith Barr, chief executive of IHG, said the acquisition of Six Senses would bring “deep experience to IHG’s luxury operations” with the development pipeline providing “a platform for high-quality growth”.
“This acquisition continues the progress we've made against the strategic initiatives we outlined a year ago, which included a commitment to adding new brands in the fast-growing US$60bn luxury segment", he added.
In early trading Wednesday, IHG shares were up 0.4% at 4,476.5p.