Shares in InterContinental Hotels Group (LON:IHG) have climbed higher in London this morning, as the company announced that it had inked a deal to buy Six Senses Hotels. The move comes as the Crowne Plaza and Holiday Inn owner looks to expand its luxury footprint.
As of 08:49 GMT, InterContinental’s share price had added 0.44 percent to 4,478.00p, largely in line with gains in the blue-chip FTSE 100 index which is currently 0.41 percent better off at 7,162.10 points. The group’s shares have given up about 3.5 percent of their value over the past year, as compared with less than a one-percent fall in the Footsie.
IHG buys Six Senses Hotels
InterContinental announced in a statement this morning that it had inked a deal to acquire Six Senses Hotels Resorts Spas for $300 million in cash. Six Senses currently manages 16 hotels and resorts, with 18 management contracts signed into its pipeline, and more than 50 further deals under active discussion.
“Six Senses is an outstanding brand in the top-tier of luxury and one we’ve admired for some time,” InterContinental’s chief executive Keith Barr commented in the statement, adding that the deal would further ‘round up’ the company’s luxury offer. The group further noted that Six Senses will sit ‘at the top’ of its luxury portfolio.
Analysts on FTSE 100 group
Barclays reaffirmed InterContinental as an ‘equal weight’ last week, without specifying a price target on the shares. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 4,631.25p.
UBS lifted its rating on the Holiday Inn owner last month, pointing to a decline in the group’s shares.
InterContinental is scheduled to update investors on its performance on February 19.
As of 09:20 GMT, Wednesday, 13 February, InterContinental Hotels Group PLC share price is 4,478.00p.