InterContinental Hotels buys Six Senses Hotels Resorts and Spas for $300m

InterContinental Hotels Group has announced the acquisition of Six Senses Hotels Resorts and Spas from Pegasus Capital Advisors for $300m in cash.

The acquisition includes all of Six Senses' brands and operating companies but does not include any real estate assets. The business manages 16 hotels and resorts and there are a further 18 management contracts signed into its development pipeline and more than 50 further deals under active discussion.

IHG said that 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' estate and high-quality development pipeline will further round out its position in the luxury segment.

Six Senses currently generates fee revenues of more than $13m. IHG said the deal is expected to be EBITDA breakeven in year two and to generate a return approximately equal to its cost of capital by year four.

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 $60bn luxury segment."