InterContinental Hotels Group (IHG) has acquired Six Senses Hotels Resorts Spas for $300 million cash from Pegasus Capital Advisors, continuing its goal of expanding its footprint in the luxury segment.
The deal includes all of Six Senses’ brands and operating companies, including 37 spas and sister companies Evason and Raison d’Etre. It does not include any real estate assets.
The luxury wellness brand manages 16 hotels and resorts, with 18 management contracts signed in its pipeline and more than 50 additional deals under active discussion.
Over the next 12 months, Six Senses will open properties in the private island of Krabey in Cambodia, a circuit of five lodges in Bhutan, and a 14th-century-old restored fort in Rajasthan. Additional projects are currently under way in Austria, Brazil, Mainland China, Spain, Switzerland, Taiwan and Thailand.
IHG said it plans to grow its portfolio to more than 60 properties globally over the next 10 years. This includes bringing Six Senses to important urban markets, with a contemporary duo of twisting towers located in Manhattan’s West Chelsea neighborhood along the High Line already under construction.
“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 billion luxury segment,” said IHG CEO Keith Barr.
As consumers are looking for something other than the traditional big-box upscale hotel and want a more unique experience, IHG has made a push to grow its luxury portfolio. After taking control of Regent Hotels & Resorts last year, IHG said it would reposition the brand before increasing the portfolio from six to 50 hotels globally. Similarly, Kimpton Hotels & Restaurants has expanded to 14 countries since being acquired in 2015.
Today’s acquisition of Six Senses takes IHG’s portfolio of open and pipeline luxury hotels to 400 hotels (108,000 rooms) globally, which also includes InterContinental Hotels & Resorts.