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Formosa International Hotels Confirms Acquisition of Regent
04/20/2010
Taipei, Minneapolis, Chicago, April 20, 2010 — Formosa International Hotels Corporation (FIHC) confirmed that it has entered into definitive agreements with affiliates of the Carlson Companies and The Rezidor Hotel Group AB to acquire the Regent hotel business. Closing of the master purchase agreement executed on Friday, Taipei time, should occur during the next three to four weeks.
Founded by legendary hoteliers Robert Burns, George Raphael and Adrian Zecha in the 1980s, Regent became synonymous with impeccable service in an environment of simple elegance. FIHC intends to return Regent’s reputation for innovation, quality and the values of traditional Asian hospitality to prominence in the hotel industry.
FIHC is the original owner of the Regent Taipei. Chairman S. Steven Pan noted that his family’s twenty year association with the brand has provided Formosa with a unique understanding of its origins, its commitment to exceptional service and understated elegance. “We were here when Regent’s founders brought their concepts and values to life, and we have nurtured those traditions in our hotel. We look forward to restoring the original Regent precepts of timeless design and intuitive service to the luxury end of the business,” he said.
Currently operating hotels in Beijing, Berlin, Bordeaux, Zagreb, and Turks & Caicos, Regent also has a vibrant pipeline of properties in various stages of development in Abu Dhabi, Bangkok, Bali, Doha, Dubrovnik, Gurgaon, Kuala Lumpur, Maldives, Phuket and Puerto Rico. Regent has its eye on further expansion, through both acquisition and management, around the world. “We want to return to the gateway cities of the world,” said Chairman Pan, “and now, with exceptional properties financially stressed by the recession coming to the market, we are well positioned to bring a great brand opportunity to the hotel investment community. Our goal is simply to be the most admired luxury hotel brand in the world, both by our guests and our partners.”
Formosa was assisted in the transaction by a team of experienced hotel executives and legal counsel. Advisory services were provided by long-time hotel development executives, Bill Sipple of Index Consulting Group, LLC, and Peter Connolly, Executive Vice President - Operations & Development of Hostmark Hospitality Group and formerly general counsel of Hyatt Hotels. Formosa's U.S. and transactional counsel are Jim Butler and Cathy Holmes of the Jeffer, Mangels, Butler & Marmaro Global Hospitality Group, with 20 years of experience representing hotel owners, developers, lenders and managers in over $60 billion in hotel transactions. Claude Montgomery, a veteran commercial litigator and creditor's right counsel to hotel owners and lenders and German law qualified Kristina Beirne led a team from the Paris-based Salans firm in providing Formosa legal counsel in Europe. The Financial advisor was Mr. Carl Chien, CEO of JP Morgan & Co., Taiwan.
About Index Consulting Group, LLC
ICG provides a wide range of advisory services to hotel owners, lenders, operators and developers, including: investment sales and acquisitions, debt/equity project finance, deal structuring, loan workouts and asset positioning (wgsipple@icgroup-llo.com).
About Hostmark Hospitality Group
Hostmark Hospitality Group is a leading hospitality management firm headquartered in Schaumburg, Illinois, with regional offices in Denver, Colorado, and Cairo, Egypt. Under consistent leadership spanning more than four decades, Hostmark Hospitality Group has operated more than 325 hotels, resorts and concept restaurants with asset value exceeding $21 billion (www.hostmark.com).
About JMBM
The JMBM Global Hospitality Group(r) provides the premier hospitality-focused legal team in a fullservice law firm. For over 20 years, JMBM's seasoned hotel lawyers have represented hotel owners, lenders, and developers in more than $60 billion of hotel transactions involving more than 1,000 properties located around the globe (www.jmbm.com or www.hotellawblog.com).
About Salans
Salans LLP is a multinational full-service law firm of over 700 lawyers in 22 offices worldwide. Serving clients through cross border practice groups, Salans combines international capability and domestic expertise (www.salans.com).
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