InterContinental Hotels Group (IHG) has acquired Six Senses Hotels Resorts Spas, a leading global operator of luxury hotels, resorts and spas, for $300 mln (€265 mln) in cash.
The purchase from Pegasus Capital Advisors includes all of Six Senses’ brands and operating companies but does not include any real estate assets.
However, IHG said the transaction will give it the ‘scale, systems and operational excellence’ to expand the Six Senses estate to more than 60 properties globally over the next 10 years by leveraging Six Senses’ development pipeline.
Keith Barr, CEO of IHG, commented: ‘Six Senses’ attractive development pipeline provides us with a platform for high quality growth. With the power of the IHG enterprise, we believe we can expand Six Senses to more than 60 properties globally over the next decade. 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 $60 bn luxury segment.’
Six Senses currently manages 16 hotels and resorts, with 18 management contracts signed into its pipeline, and more than 50 further deals under discussion. It has properties in locations such as the Maldives, the Seychelles, Yao Noi in Thailand, Zighy Bay in Oman, and Portugal’s Douro Valley (pictured).
The acquisition includes Six Senses’ spa operations, which are core to the brand’s luxury and wellness positioning. The company operates 37 spas in total under the Six Senses and LivNordic brand names, and also provides spa consultancy services. It currently generates fee revenues of more than $13 mln. The Six Senses management will remain in place.
Six Senses will sit at the top of IHG’s luxury portfolio, complementing the world’s largest luxury hotel brand, InterContinental Hotels & Resorts; the recently acquired and repositioned Regent Hotels & Resorts; and Kimpton Hotels & Restaurants, for which IHG has secured a presence in 14 countries, since its acquisition of the brand in 2015.
The acquisition of Six Senses takes IHG’s portfolio of open and pipeline luxury hotels to 400 hotels (108,000 rooms) globally.
