InterContinental buys 51% stake in Regent Hotels

InterContinental Hotels Group has agreed to acquire a 51% stake in luxury hotel group Regent Hotels and Resorts.   

The stake will be acquired for $39m (£30m) in cash, paid in three tranches of $13m, the first on the date of completion, the second in 2021 and the third in 2024.

IHG has the option to acquire the remaining 49% stake in phases from 2026. This would be via a combination of put and call options, is capped, and is based on a trailing 12-month multiple of joint venture income, which based on its current projections