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Can once-regal Regent rebound with IHG?

The launch of Regent in 1970 was heralded as a new age for global luxury hospitality, and InterContinental Hotels Group must be hoping the heritage brand will add some luster to its own ambitions in that segment, even after all these years and Regent’s ups and downs.

In March, IHG announced that it had agreed to acquire a 51% stake in Regent Hotels & Resorts for US$39 million and entered a joint venture with Taipei’s Formosa International Hotels Corp. to accelerate the brand’s expansion. IHG will have the right to acquire the remaining 49% in phases from 2026; its intention is to grow the brand from today’s six hotels to over 40 across global gateway cities and resort locations.

Among the first moves, logically, is to rebrand the former flagship on the harbor in Hong Kong, currently operating as an InterContinental. It will return to Regent branding in 2021 after an extensive renovation led by owner Gaw Capital Partners, which bought the asset in 2015 for US$938 million.

Kenneth Gaw, president and managing principal of Gaw Capital, thinks it’s the perfect place for the re-launch of the Regent brand, given the history. “We can consider more Regents in Asia Pacific if the right project presents itself,” he said.

The acquisition of Regent is one of IHG’s new strategic initiatives to expand its footprint in the fast-growing US$60 billion luxury segment and will be supported by the creation of a new dedicated division.
The acquisition of Regent is one of IHG’s new strategic initiatives to expand its footprint in the fast-growing US$60 billion luxury segment and will be supported by the creation of a new dedicated division.

Founded by hospitality superstars Robert Burns, Georg Rafael and Adrian Zecha, Regent identified a new luxury guest and combined Asian hospitality with western elegance to meet their every need. As Burns put it, “The only thing we specialize in is luxury.” In 1981 they opened The Regent Hong Kong, which became the group’s flagship and consistently won awards as the world’s best hotel. 

Zecha said the evening of the grand opening would “always be remembered as the occasion where the most bottles of Champagne were consumed in Hong Kong. Some 550 were invited and more than 400 gatecrashed. I think the deal has potential because there is great nostalgia for the Regent brand.”

Rafael agrees the sparkle can be returned to the brand. “The basics are good,” he said, “but it needs the right steward.”

In 1989 Regent added more glamour with the Beverley Wilshire but just three years later the group was acquired by Four Seasons Hotels and Resorts, which sold it on to Carlson Companies, which used the name on its cruise line. For a while the brand languished, and in 2010 it was acquired by Formosa International.

Announcing the deal, IHG CEO Keith Barr said, “We see a real opportunity to unlock Regent’s enormous potential and accelerate its growth globally.”

The acquisition of Regent is one of IHG’s new strategic initiatives to expand its footprint in the fast-growing US$60 billion luxury segment and will be supported by the creation of a new dedicated division bringing together some of the most experienced and respected people in the industry. IHG has already spoken about its intention to acquire a couple of small, asset-light brands that they can grow to access opportunities in the luxury space.

There already is speculation that the InterContinental London will be rebranded Regent along with the InterContinental Sydney and the Willard in Washington D.C. An IHG representative confirmed that the company might rebrand a few existing InterContinental hotels over time but it expects the majority of growth to come from incremental properties. The deal will give IHG greater opportunities with owners and developers who favor the luxury segment.

Many are hoping that from this little acorn a mighty luxury oak will grow.

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