IHG acquires Six Senses in $300m cash deal
INTERCONTINENTAL Hotels Group (IHG) has acquired Six Senses Hotels Resorts Spas, one of the world’s leading operators of luxury hotels, resorts and spas for $300 million. The cash acquisition from Pegasus Capital Advisors includes all of Six Senses’ brands and operating companies and does not include any real estate assets.Six Senses is an asset-light business. It manages 16 hotels and resorts (1,347 rooms), and there are a further 18 management contracts signed into its development pipeline. The open hotels include two properties for the upscale resort brand, Evason. With a further 50 deals under active discussion, IHG expects to accelerate Six Senses’ growth globally to more than 60 hotels over the next 10 years. The acquisition includes the entirety of Six Senses’ brands and operating companies. It includes 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. The Six Senses management will remain in place.
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. This acquisition takes IHG’s portfolio of open and pipeline luxury hotels to 400 hotels (108,000 rooms) globally. 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.” * Six Senses Hotels Resorts Spas can be found on stand HC1055