IHG buys Six Senses Hotel for $300 million
Intercontinental Hotels Group has agreed to buy the brands and operating companies of Six Senses Hotels Resorts & Spa for $300 million in cash, the owner of the Crowne-Plaza and Holiday Inn chains said on Wednesday, in a move that has now expanded his hotel portfolio.
IHG, which has been pressured by competition from online rental services like Airbnb, has looked to re-focus on cometing with the sprawling luxury portfolios run by Marriott and Hilton.
"Six Senses is an outstanding brand in the top-tier of luxury and one we'ev admired for some time," Chief Executive Officer Keith Barr said of the deal, which takes IHG's total porfolio of luxury hotels to 400 properties with 108,000 rooms."
The aquisition from private asset management firm Pegasus Capital Advisors does not include any real estate assets and would generate a return approximately equal to its cost of capital by the fourth year after the purchase, IHG said.
