Intercontinental Hotels buys Six Senses for £300m

Intercontinental Hotels Group said Wednesday it had acquired Six Senses Hotels Resorts Spas from Pegasus Capital Advisors for $300m in a bid to expand the company's position in the luxury segment.

Six Senses currently managed 16 hotels and resorts, with 18 management contracts signed into its pipeline, and more than 50 further deals under active discussion, the company said.

Intercontinental sees the potential to grow the Six Senses estate to more than 60 properties globally over the next 10 years.

Six Senses currently generated fee revenues of more than $13m and the acquisition was expected to be earnings (EBITDA) breakeven in year two and to generate a return approximately equal to its cost of capital by year four, the company added.