Formosa International Hotels Corp (FIH, 晶華酒店) has inked an agreement with InterContinental Hotels Group (IHG) to set up a joint venture, Regent Hospitality Worldwide Inc, to operate all Regent properties in overseas markets.
The board of FIH, the largest hospitality operator in Taiwan, on Wednesday gave its approval to the alliance that would allow IHG a controlling stake in the joint venture and bring in NT$1.15 billion (US$39.38 million) in non-operating income, FIH said in a statement.
“The alliance will enable us to build the Regent brand into a much more profitable business, while focusing on the Regent Taipei and brand expansion in Taiwan,” FIH executive chairman Steven Pan (潘思亮) said.
IHG would have the rights to develop and manage all existing and new Regent properties outside of Taiwan, while FIH would retain exclusive rights to develop and manage development projects under the Regent brand in Taiwan, including the management of the Regent Taipei Hotel.
FIH and IHG both see expanding potential in the luxury hotel market and an opportunity to take the Regent brand to greater heights, Pan said.
All Regent properties would join IHG’s global online reservation system and loyalty program, accelerating the pickup in sales and profits, the statement said.
“IHG shares and can deliver on our ambitious vision for the brand. This alliance not only creates a win-win solution for IHG and FIH, but also for our partners, associates, loyal customers and all stakeholders,” Pan said.
The Regent properties in Beijing; Berlin; Chongqing, China; Tivat, Montenegro; Taipei; and Singapore, he said, adding that new hotels are opening in Harbin, China; Jakarta; and Phu Quoc, Vietnam.
The group saw a significant opportunity to develop its global footprint in the fast-growing luxury segment, and Regent is an excellent addition to IHG’s portfolio, IHG chief executive Keith Barr said.
As one of the largest hotel management companies, IHG would help the Regent brand to gain worldwide reach on a well-established global platform, he said.
Under the alliance, the InterContinental Hotel Hong Kong would be renamed Regent Hong Kong after the completion of an extensive refurbishment in 2021, the statement said.
The return of the Regent Hong Kong would create a new flagship and be a showcase for global expansions, it said.
The joint venture is not to affect FIH’s other brands in Taiwan: Silks Place (晶英酒店), Wellspring By Silks (晶泉丰旅) and Just Sleep Hotel & Resort (捷絲旅).
Silks Place operates five hotels in Taiwan, while Just Sleep has seven. The group also runs eight standalone restaurants.
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