Inter Continental Hotels Group has acquired Six Senses Hotels Resorts Spas for $300 million from Pegasus Capital Advisors.It includes all of Six Senses’ brands and operating companies and does not include any real estate assets.
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 the Maldives, the Seychelles, Yao Noi in Thailand, Zighy Bay in Oman, and Portugal’s Douro Valley, the addition of Six Senses’ award-winning estate and high-quality development pipeline will further round out IHG’s position in the luxury segment.
At Six Senses’ core is a commitment to guest rejuvenation and reconnection, with an expert focus on wellness and sustainability. The acquisition extends IHG’s reach to a community of affluent travellers and new owners and provides instant entry to some of the world’s most sought-after locations.
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. Today’s acquisition of Six Senses takes IHG’s portfolio of open and pipeline luxury hotels to 400 hotels (108,000 rooms) globally.
IHG plans to grow its luxury hotels globally
By combining IHG’s scale, systems and operational excellence with Six Senses’ luxury, resort and spa expertise, IHG sees the potential to grow the Six Senses estate to more than 60 properties globally over the next 10 years. This includes bringing Six Senses to important urban markets, with a property already under construction in West Chelsea, Manhattan, New York City.
Keith Barr, Chief Executive Officer, IHG, commented: “Six Senses is an outstanding brand in the top-tier of luxury and one we’ve admired for some time. You only have to look at its iconic hotels and resorts to see how this acquisition will further round out our luxury offer. With a focus on wellness and sustainability, Six Senses has been voted the world’s top hotel brand for the past two years, which is testament to its impressive management team who bring deep experience to IHG’s luxury operations.
“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.”
Neil Jacobs, Chief Executive Officer, Six Senses Hotels Resorts Spas, commented: “An outstanding business has been built over the past 20 years, and a respected portfolio of hotels and resorts, with wellness and sustainability at their heart. This distinct proposition and the popularity of our award-winning estate, combined with IHG’s scale, systems and expertise gives us the opportunity to accelerate Six Senses’ global growth.”
David Cogut, Principal, Pegasus Capital Advisors, commented: “Six Senses fit well with our core themes of investing in sustainability and wellness with a focus on ESG (Environmental, Social and Governance) integration, and we’re proud of the work we have done to build it into one of the world’s best luxury hotel brands. Since acquiring the brand in 2012, we have taken the Six Senses experience to some of the world’s most select locations. IHG shares many of our values and will protect what’s special about the brand as it drives Six Senses’ next phase of growth.”