IHG Buys Six Senses for US$300m

Main Photo: The View (villa) at Six Senses Yao Noi, Thailand

Date: February 2019

Location: Global… with properties in the Maldives, the Seychelles, Thailand, Oman, and Portugal’s Douro Valley among others.

Names:  Six Senses

No. of Keys: 1,347 rooms. Six Senses currently manages 16 hotels and resorts, with 18 management contracts signed in its pipeline, and more than 50 further deals under active discussion.

Seller: Private asset management firm Pegasus Capital Advisors. The hotels were managed rather than owned.

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.”

Six Senses operates 37 spas in total under the Six Senses and LivNordic brand names, and also provides spa consultancy services.

Buyer: InterContinental – IHG… this deal takes IHG’s total portfolio of luxury hotels to 400 properties with 108,000 rooms.

IHG has agreed to buy the brands and operating companies of Six Senses Hotels Resorts Spas for US$300 million in cash.

“Six Senses is an outstanding brand in the top-tier of luxury and one we’ve admired for some time,” Chief Executive Officer Keith Barr said of the deal.

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 New York City.

The acquisition does not include any real estate assets and would generate a return approximately equal to its cost of capital by the fourth year after the purchase, IHG said.

Price: US$300m

Price per Key: US$222,717

THPT Comment: Great deal for IHG and shows that Marriott is not the only buyer in town! Good commercial deal.

First Seen: Reuters

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