DENHAM, UK — InterContinental Hotels Group is acquiring a 51% stake in Regent Hotels and Resorts in a US$39 million deal, with the option to acquire the remaining 49% starting in 2026.

IHG says it will bring Regent into its brand portfolio at the top end of the luxury segment and will accelerate its growth globally, with an eye to growing the brand from six hotels currently to more than 40 hotels, comprising 10,000+ rooms, in key urban and resort destinations.

IHG also announced that following an extensive refurbishment starting in early 2020, InterContinental Hong Kong will become a Regent Hotel in early 2021. The hotel first opened its doors in 1980.

IHG says its acquisition of Regent is part of one of its new strategic initiatives focused on continuing to expand its footprint in the $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 Keith Barr, Chief Executive Officer of IHG. “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.”

Pending approval the transaction is expected to close during the second quarter of 2018.