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IHG buys Six Senses Hotels business for $300 million


(Reuters) - Hotels Group has agreed to buy the and operating of Hotels Resorts Spas for $300 million in cash, the owner of the and chains said on Wednesday, in a move that beefs up its luxury portfolio.

IHG, which has been pressured by competition from like Airbnb, has looked to re-focus on competing with the sprawling luxury portfolios run by and Hilton.

"is an outstanding brand in the top-tier of luxury and one we've admired for some time," said of the deal, which takes IHG's total portfolio of luxury hotels to 400 properties with 108,000 rooms.

currently manages 16 hotels and resorts, with 18 management contracts signed in its pipeline, and more than 50 further deals under active discussion. It operates properties in the Maldives, the Seychelles, Thailand, Oman, and Portugal's among others.

The company said it expects to expand Six Senses, which generates fee revenues of over $13 million, to more than 60 properties globally over the next decade, including to the high-end West Chelsea, Manhattan area of

The acquisition from private asset management firm does not include any and would generate a return approximately equal to its cost of capital by the fourth year after the purchase, IHG said.

(Reporting by in Bengaluru)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 13 2019. 13:22 IST