InterContinental buys Six Senses Hotels Resorts Spas

Friday, 15 February 2019 00:00 - - {{hitsCtrl.values.hits}}

InterContinental Hotels Group has completed its acquisition of Six Senses Hotels Resorts Spas.

The $300 million cash acquisition from Pegasus Capital Advisors includes all of Six Senses’ brands and operating companies, but does not include any real estate assets. It does include Six Senses’ spa operations, which are core to the brand’s luxury and wellness positioning. Six Senses operates 37 spas in total under the Six Senses and LivNordic brand names, and also provides spa consultancy services.

Six Senses currently manages 16 hotels and resorts, with 18 management contracts signed into its pipeline, and more than 50 further deals under active discussion.

With properties in locations such as Maldives, Seychelles, Yao Noi in Thailand, Zighy Bay in Oman, and Portugal’s Douro Valley, the addition of Six Senses’ estate and high-quality development pipeline will further round out IHG’s position in the luxury segment.

Six Senses will sit at the top of IHG’s luxury portfolio, complementing 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.

IHG Chief Executive Officer Keith Barr said, “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 billion luxury segment.”

The target of 60 properties globally over the next 10 years includes bringing Six Senses to important urban markets, with a property already under construction in West Chelsea, Manhattan, New York City.

The Six Senses management are expected to remain in place.